Question

Stockholders' equity Common stock Retained earnings Total stockholders' equity S 139,000 S 114,000 0,000 18,000 $ 179,000 132,000 $ 354,000 292,000 Total liabilities and equity Balance Sheet Liabilities Current liabilities: Accounts payable Wages payable Interest payable Income taxes payable S 29,000 S 39,000 3,000 8,000 2,000 10,000 ,0003,000 S 79,000 S 70,000 Total current liabilities 96,000 90,000 Notes payable (long-term) Total liabilities S 175,000 S 160,000 Stockholders' equity Common stock Retained earnings Total stockholders' equity S 139,000 S 114,000 40,000 18,000 $ 179,000 132,000 Print Done Question Help Balance Sheet 6, is as follows Seaway Travel Services, InC. Comparative Balance Sheets December 31,2017 and 2016 Assets Transactions 2016 2017 Land was sold for $1,400 Equipment was purchased for cash. There were no disposals of equipment during the year The common stock was issued for cash Net income for 2017 was $31,000 Cash dividends paid during the year were $9,000 Current assets Cash Accounts receivable Inventory Prepaid insuranc $ 42,000 S 22,000 77,000 86,000 57,000 6,000 8,000 11,000 S 184,000 S 135,000 PrintDone Total current assets Land Equipment Less: Accumulated depreciation Total assets S 109,000 $ 114,000 81,000 56,000 (20,000) (13,000) S 354,000 $ 292,000

Answer 1

A Cash flow statement provides the following information:

1) Information about company's cash receipt and cash payment during an accounting period.

2) Information about company's operating, investing and financing activities.

3) Information access the company's liquidity, solvency and financing flexibility.

Cash flow from operating activities (CFO), consists of the inflows and outflows of cash resulting from transactions that affect a firm's net income.

Cash flow from investing activities (CFI) consists of the inflow and outflows of cash resulting from the acquisition of long term assets and investment.

Cash Flow from financing activities (CFF) consists of the inflow and outflows of cash resulting from transactions affecting a firm's capital structure.

2 Seaway Travel Services Inc Cash Flow Statement For the year ended December 31. 2017 Particulars Land Beginning Balance Less: Ending Balance $114,000 $209.000) $5,000 Amount Cash Flow from Operating Activity Net Income Adjustment to reconcile net income to cash basis Add: Depreciation Add: Loss on Sale of Land Decrease in Accounts Receivable Increase in Inventory $31,000 value of land sold $20000 $1300057,000 $3,600 9,000 (S41,000) 53,000 $10,000) 15,000 Sale value of land 1,400 ($5,000) S3,600) Note 1 Value ot land Loss on sale of land Closing Balance Openine Balance Increase /(Decrease Particulars ecrease in Inventory Decrease in Accounts Payable Increase in Wages Payable Note 2 A) 577,000 $57,000 $8,000 $29,000 $33,000 $12,000 5,000 586,000 $16,000 11,000 539,000 $18,000 $10,000 $3,000 ($9.000) 41,000 ($3,000) ($10,000 15,000 $2,000 Accounts Receivable ease in Interest payable nventory Prepaid incurance Accounts Payable Wages Payable Interest Payable Income Tax payable Increase in Assets is Cash Outfiow and Decrease in Assets in Cash Inflow Increase in Liability is Cash Inflow and Decrease in Liability in Cash Outflow Incr $2,000 ($9,400 21,600 Decrease in Income tax payable Cash inflow from Operating Activity