Question

Problem 14-11 Missing Data; Statement of Cash Flows L014-1, LO14-2] Yoric Company listed the net changes in its balance sheet accounts for the past year as follows DebitsCredits> Credits by: Debits by: Cash Accounts receivable Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings 110,000 $65,00e 8,000 30,000 80,000 220,000 5,000 32,000 9,000 16,000 170,000 50,000 $686,000 $686,000

Answer 1

Yoric Company
Statement of cash flows
Operating activities
Net Income		$70,000
Adjustment to convert net income to a cash basis:
Depreciation	$42,000
Increase in Accounts Receivable	-$110,000
Decrease in Inventory	$65,000
Decrease in Prepaid Expenses	$8,000
Increase in Accounts Payable	$32,000
Decrease in Accrued Liabilities	-$9,000
Increase in Income taxes payable	$16,000
Gain on sale of equipment	-$2,000
		$42,000
Net cash provided by operating activities		$112,000
Investing activities
Decrease in long-term loans to subsidiaries	$30,000
Proceeds from sale of equipment	$15,000
Additions to long-term investments	-$80,000
Additions to Plant and Equipment	-$270,000
Net cash used by investing activities		-$305,000
Financing activities
Issuance of Bonds payable	$400,000
Repurchase of Common stock	-$170,000
Cash Dividend	-$20,000
Net cash used by financing activities		$210,000
Net increase (decrease) in cash and equivalents		$17,000
Cash and equivalent at beginning of year		$23,000
Cash and equivalent at end of year		$40,000