CES Problem 23-9 Your answer is partially correct. Try again. and Sandhill Corpo

Question

CES Problem 23-9 Your answer is partially correct. Try again. and Sandhill Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. December 31 2017 2016 Cash Accounts recelvable $38,500 $13,200 12,400 10,100 11,900 9,900 -0 3,000 -0 30,000 40,200 19,800 5,300 108,000 $91,300 Equity investments Buildings Equipment Copyrights 5,000 Totals Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-buildings Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings $2,900 2,000 $4,500 4,600 -0 5,900 5,000 3,900 -0- 5,000 2,900 3,900 36,000 25,000 33,000 S,500 udy 38,000 21,200

Explanation / Answer

SANDHILL CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income [$21,200 - $5,500] $15,700 Adjustments to reconcile the net income to Net cash provided by the Operating activities Loss on Sale of Equipment $5,270 Gain from Flood damage ($13,100) Depreciation Expense $730 Copyright Amortization $300 Gain on Sale of Investment ($1,500) Increase in Accounts Receivables (Net) ($3,900) Increase in Inventory ($2,000) Increase in Accounts Payable $1,100 (13,100) Net Cash provided by the Operating Activities $2,600 Cash Flows from Investing Activities Sale of Investments $4,500 Sale of Equipment $2,500 Purchase of Equipment ($15,500) Proceed from Flood Damage to Buildings $37,200 Net Cash provided by Investing Activities $28,700 Cash Flows from Financing Activities Payment of Dividends ($5,000) Payment of Short-term Notes payable (1,000) Net Cash used by Financing Activities ($6,000) Net Increase in Cash [$2,600 + 28,700 - $6,000] $25,300 Cash January 1, 2017 $13,200 Cash December 31,2017 [$25,300 + $13,200] $38,500 Supplemental disclosures of cash flow information Cash paid during the year for Interest $2,000 Cash paid During the year for Income taxes $5,000 Non- Cash Financing Activities Activities: Retired Note payable by issuing Common Stock $5,000 Purchased Equipment by issuing Notes Payable $16,000 $21,000

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