Find statement of cash flows Balance Sheet 2013 2012 2013 cash $ 15,000 $ 9,000
ID: 2335973 • Letter: F
Question
Find statement of cash flows
Balance Sheet 2013 2012 2013 cash $ 15,000 $ 9,000 accounts receivable $ 240,000 $ 340,000 inventory $ 175,000 $ 125,000 prepaid expenses $ 6,000 $ 10,000 Total current assets: $ 436,000 $ 484,000 Property, plant, and equipment $ 470,000 $ 610,000 Less Accumulated depreciation $ 85,000 $ 93,000 net property plant and equipment $ 385,000 $ 517,000 long term investments $ 19,000 $ 16,000 Total assets: $ 840,000 $ 1,017,000 Accounts payable $ 230,000 $ 310,000 Accrued Liabilities $ 72,000 $ 60,000 Income taxes payable $ 34,000 $ 40,000 Total Current Liabilities ies: $ 336,000 $ 410,000 bonds payable $ 180,000 $ 290,000 total liabilities: $ 516,000 $ 700,000 common stock $ 250,000 $ 210,000 retained earnings $ 74,000 $ 107,000 total stockholder's equity $ 324,000 $ 317,000 total liabilites and stockholders equity $ 840,000 $ 1,017,000 r the Peoples Show Store are as follows Peo INCOME STATEMENT l statements for 2013 800,000 500.000 300,000 Cust of Goods Sold ss Profit selling and Operatin 213,000 Ner Operating Income ting items Gain on sale of investing Loss on sale of equipment me before taxes 7,000 3.0 90,000 27.000 63,000 taxes Net During 2013, Peoples sold some equipment for $20,000 that had cost $40,000 and a which there was accumulated depreciation of $16,000. In addition, the company sold Jons-term investments for $10,000 that had cost $3,000 when purchased several years aso A cash dividend was paid during 2013 and the company repurchased $40,000 of its own stock. Peoples did not retire any bonds during 2013 173 ] PagExplanation / Answer
Cash Flow Statement
Year 2013
A. Cash Flows from Operating Activity
Net Income
$ 63,000.00
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation expense
$ 24,000.00
Gain on sale of Investments`
$ (7,000.00)
Loss on sale of equipment
$ 4,000.00
Increase in Accounts receivables
$ (100,000.00)
Increase in Accounts payables
$ 80,000.00
Decrease in Inventory
$ 50,000.00
Increase In Prepaid Expenses
$ (4,000.00)
Increase in Income taxes payable
$ 6,000.00
Decrease in Accrues Liabilities
$ (12,000.00)
$ 41,000.00
Net cash flow from Operating activities
$ 104,000.00
B. Cash flows from Investing Activities
Sale of long term investment
$ 10,000.00
Purchase of Equipment
$ (180,000.00)
Sale of Equipment
$ 20,000.00
Net Cash flows from Investing activities
$ (150,000.00)
C. Cash Flows from Financing activities
Buyback of Common stock
$ (40,000.00)
Proceeds from bonds issue
$ 110,000.00
payments of dividends
$ (30,000.00)
Cash flows from Financing activities
$ 40,000.00
Net Increase (Decrease) in Cash [A+B+C]
$ (6,000.00)
Cash at the beginning of the period
$ 15,000.00
Cash at the end of the period
$ 9,000.00
Working notes
Equipment purchased during the year
Beginning balance of equipment at cost
$ 470,000.00
Less; Cost of Equipment sold
$ 40,000.00
Subtotal
$ 430,000.00
Ending balance of equipment at cost
$ 610,000.00
Purchase of Equipment
$ 180,000.00
Depreciation expense during the year
Beginning balance of Accumulated depreciation account
$ 85,000.00
Less: Accumulated depreciation on sold Equipment
$ 16,000.00
Subtotal
$ 69,000.00
Ending balance of Accumulated depreciation account
$ 93,000.00
Depreciation for the year
$ 24,000.00
Calculation of Dividends paid
Beginning balance of Retained earnings
$ 74,000.00
Add: Income earned
$ 63,000.00
Subtotal
$ 137,000.00
Ending balance of Retained earnings
$ 107,000.00
Dividends paid
$ 30,000.00
Note:
Depreciation is a non cash Expense that is why it is added back to Operating profit to calculated cash generated from operations.
When Current asset Increase or Current Liability Decrease this means that cash is used.
When Current asset Decrease or Current Liability Increase this means that cash has been saved and hence added to cash from Operations. .
Please ask if there is any query regarding this question in the comment section.
Cash Flow Statement
Year 2013
A. Cash Flows from Operating Activity
Net Income
$ 63,000.00
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation expense
$ 24,000.00
Gain on sale of Investments`
$ (7,000.00)
Loss on sale of equipment
$ 4,000.00
Increase in Accounts receivables
$ (100,000.00)
Increase in Accounts payables
$ 80,000.00
Decrease in Inventory
$ 50,000.00
Increase In Prepaid Expenses
$ (4,000.00)
Increase in Income taxes payable
$ 6,000.00
Decrease in Accrues Liabilities
$ (12,000.00)
$ 41,000.00
Net cash flow from Operating activities
$ 104,000.00
B. Cash flows from Investing Activities
Sale of long term investment
$ 10,000.00
Purchase of Equipment
$ (180,000.00)
Sale of Equipment
$ 20,000.00
Net Cash flows from Investing activities
$ (150,000.00)
C. Cash Flows from Financing activities
Buyback of Common stock
$ (40,000.00)
Proceeds from bonds issue
$ 110,000.00
payments of dividends
$ (30,000.00)
Cash flows from Financing activities
$ 40,000.00
Net Increase (Decrease) in Cash [A+B+C]
$ (6,000.00)
Cash at the beginning of the period
$ 15,000.00
Cash at the end of the period
$ 9,000.00
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