Exercise 23-14 Sheffield Inc., a greeting card company, had the following statem

Question

Exercise 23-14 Sheffield Inc., a greeting card company, had the following statements prepared as of December 31, 2017. SHEFFIELD INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets $5,900 $7,000 51,300 17,800 60,200 4,000 153,400 129,000 61,500 35,000 40,400 5,000 (35,100 ) (25,100) 46,300 49,600 $312,400 $293,800 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock $46,500 $40,200 6,000 4,000 10,000 68,700 100,000100,000 30,000 4,100 8,100 7,900 60,200 30,000

Explanation / Answer

Cash flow from operating activities net income $        26,600.00 Add: depreciation 35100-(25100-19900*70%) $        23,930.00 amortization (49600-46300) $           3,300.00 Less : gain on sale of equipment $         -2,000.00 less: increase in accounts receivable $       -10,200.00 less: increase in prepaid rent $         -1,000.00 less: increase in short term investment $       -17,200.00 Add: decerease inventory $        19,800.00 add: increase in accounts payable $           6,300.00 add: increase in salary and wages payable $           4,100.00 less: decrease in income tax payable $         -1,900.00 Less: decrease in short term loan $         -2,100.00 Net cash flow from operating activities $        49,630.00 Cash flow form investing activities sale of equipment(19900*30%+2000) $           7,970.00 purchase of equipment $       -44,300.00 net cash flow from investing activities $       -36,330.00 cash flow form financing activities repaid bonds( 68700-60200) $         -8,500.00 dividend paid $         -5,900.00 net cash flow from financing activities $       -14,400.00 net cash flow $         -1,100.00 Beinning cash and cash equivalent $           7,000.00 closing cash and cash equivalent $           5,900.00

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