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Preparing a Statement of Cash Flows (Indirect Method) The following financial statements were issued by Hoskins Corporation for the fiscal year ended December 31, 2016. All amounts are in millions of U.S. dollars. Balance Sheets 2015 2016 $300 600 400 400 1,700 6,200 (2,100) 4,100 $5,800 $550 1,500 500 150 2,700 6,100 (1,750) 4,350 $7,050 Accounts Receiwable Prepaid Expenses Current Assets Property, Plant and Equipment at Cost Less Accumulated Depreciation Property, Plant and Equipment, Net Total Assets Liabilities and Shareholders Equity Accounts Payable Income Tax Payable Short-Term Debt $800 100 2,700 3,600 200 1,200 1,800 1,000 2,800 800 2,200 3,000 $5,800 Current Liabilities Long-Term Debt Total Liabilities Contributed Capital Retained Earnings 3,600 800 2,650 3,450 $7,050 Total Shareholders Equity Total Liabilities and Shareholders EquityIncome Statement Fiscal year 2016 $6,500 3,400 3,100 1,450 350 1,300 350 950 250 $700 Sales Revenues Cost of Goods Sold Gross Profit Selling, General and Administrative Expenses Depreciation Expense Operating Income Interest Expense Income Before Income Tax Expense Income Tax Expense Net Income Additional information: 1. During fiscal year 2016, Hoskins Corporation acquired new equipment for $1,200 in cash. In addition, the company disposed of used equipment that had original cost of $1,300 and accumulated depreciation of $700, receiving $600 in cash from the buyer 2. During fiscal year 2016, Hoskins Corporation arranged short-term bank financing and borrowed $1,500, using a portion of the cash to repay all of its outstanding long term debt 3. During fiscal year 2016, Hoskins Corporation engaged in no transactions involving its common stock, though it did declare and pay in cash a common stock dividend of $250.Prepare a statement of cash flows (all three sections) for Hoskins Corporations fiscal year 2016, using the indirect method for the cash from operations section. HOSKINS CORPORATION STATEMENT OF CASH FLOWS FOR YEAR ENDED DECEMBER 31, 2016 Cash flows from Operations: Net income Adjustments Change in accounts receivable Change in inventory Change in prepaid expenses Change in accounts payable Cash Flows from Operating Activities Cash Flows from Investing: Proceeds from disposal of equipment Cash Flows from Investing Activities Cash Flows from Financing ncrease in short-term debt Cash Flows from Financing Activities Net change in cash Ending cash balance

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Answer #1

The answer has been presented in the supporting sheets. Cashflow has been calculated for each activity and then totalled and then it is also matched with closing cash balance. For detailed answers refer to the supporting sheets.

DATE PAGE No epacuchon .0もSasa-added to operching-(ahtı L o cpaid expenbes has bean o ad ded to Opeanh sble has been doas со

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