Question

Please show all work and calculations. Thank you!

Problem 1. (30 points, Selected financial statement information and additional data for Stanislaus Co. is presented below. Required: Prepare a statement of cash flows in good form for the year ending December 31, 2019. Cash Accounts receivable (net)..... Inventory -------- Land Equipment... TOTAL... Accumulated depreciation... Accounts payable Payroll taxes payable. Notes payable - long-term ... Common stock...... Retained earnings..-- ----------- TOTAL 2018 $42,000 84,000 168,000 58,800 504,000 $856.800 $84,000 40,400 10,000 235,200 420,000 67.200 $856.800 December 31 2019 $68,000 137,900 209,900 21,000 789,600 $1.226400 $115,600 79,000 7,000 331,800 487,200 205.800 $1.226400 Additional data for 2019: 1. Net income was $222,800. 2. Depreciation expense was $31,600. 3. Land that orignally cost $43,500 was sold for $40,000 cash. Additional land was purchased for cash. 4. Dividends of $84,200 were paid. 5. A long-term note for $201,600 was issued to pay for an equipment purchase. Other equipment was purchased for cash. 6. Common stock was issued to pay $67,200 on a long-term note payable. Additional cash repayments were made on the long-term note payable.

Answer 1

Stanislaus Co. Cashflow Statement as at 31st December 2019 using Indirect method :- Particulars Amount $ Amount $ Cash Flows From Operating Activities: Net Income 222,800 Adjustments to Reconcile Net Income to Net Cash Provided by operations : Add: Depreciation Expense 31,600 Add: Loss on sale of equipment 3,500 Changes in Working Capital :- Less: Increase in Accounts receivable (53,900) Less: Increase in Inventory (41,900) Add: Increase in Accounts Payable 38,600 Less: Decrease in Payroll taxes Payable (3,000) (25,100) Net cash provided/(used) by Operating Activities 197,700 Cash Flows From Investing Activities: Cash received from sale of Land Cash paid for Purchase of Land (Note 1) Cash paid for Purchase of Equipment Change in cash due to Investing Activties 40,000 (5,700) (84,000) (49,700) (84,200) (37,800) Cash Flows From Financing Cash paid for Dividends Cash paid for Notes Payable Change in cash due to Financing Net Changes in Cashflow from all activities Cash at the beginning of the year Cash at the end of the year (122,000) 26,000 42,000 68,000 Note: 1 Cash paid for purchase of land is = Balance as on 31st December 2018 - Value of land sold - Balance as on 31st December 2019 = (58800-43500-21000) Note : 2 Cash paid for equipment purchase is = Balance as on 31st December 2019- equipment purchased by issue of notes payable - Balance as on 31st December 2018 = (789600-201600-504000) = $ 84,000/. Note : 3 Cash paid for long term notes = Balance as on 31st December 2018 - common stock issued for payment of notes notes issued for equipment purchase - Balance as on 31st December 2019 = (235200-67200-201600-331800) = 5 37,800/. Common stock issued for notes payable of $ 67,200 and equipment purchase by issue long term notes payable of 5 201,600 are non-cash items.