41. Use the following Balance Sheet and additional information to prepare a Stat
ID: 2338130 • Letter: 4
Question
41. Use the following Balance Sheet and additional information to prepare a Statement of Cash Flows for 2014 on the following pages BENETEAU CORPORATION Balance Sheet December 31, 2017 and December 31, 2016 2017 2016 Change Assets Cash Accounts receivable Prepaid insurance Land Equipment Accumulated depreciation $37,000 $31,000 80,00060,000 17,000 $6,000 20,000 5,000 22,000 18,000 40,000 (22,000) 70,000 60,000 10,000 (20,000 (13,000) (7,000) Total Assets S20000 $195,000 12,000 Liabilities and Stockholders' Equit Accounts payable Bonds payable Common stock Retained earnings $6,000 19,000 $12,000 27,000 140,000 115,000 6,000 8.000 25,000 28.000 55.000(27,000) Total liabilities and stockholders' equityExplanation / Answer
Beneteau Corporation
Statement of cash flows
For the year ended December 31, 2017
Particulars
$
$
I. Cash flow from Operating Activities
Net loss
-12,000
Add: Non-cash and non-operating expenses and losses:
Depreciation on equipment
17,000
Loss on sale of land
2,000
Operating profit before working capital changes
7,000
Add: Increase in current liabilities
Less: Increase in current assets
Net cash generated from Operating Activities
-12,000
II. Cash flow from Investing Activities
Sale of Land
20,000
Sale of equipment
5,000
Net cash generated from Investing Activities
25,000
III.Cash flow from Financing Activities
Issue of bonds
20,000
Redemption of bonds
-12,000
Cash dividend paid
-15,000
Net cash used in Financing Activities
-7,000
Net increase in Cash and Cash Equivalents(I +II +III)
6,000
Add: Cash and cash equivalents in the beginning of the period
31,000
Cash and cash equivalents at the end of the period
37,000
Working note
Equipment Account
Accumulated depreciation account
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Particulars
$
$
I. Cash flow from Operating Activities
Net loss
-12,000
Add: Non-cash and non-operating expenses and losses:
Depreciation on equipment
17,000
Loss on sale of land
2,000
Operating profit before working capital changes
7,000
Add: Increase in current liabilities
Accounts payable 6,000Less: Increase in current assets
Accounts receivable -20,000 Prepaid insurance - 5,000Net cash generated from Operating Activities
-12,000
II. Cash flow from Investing Activities
Sale of Land
20,000
Sale of equipment
5,000
Net cash generated from Investing Activities
25,000
III.Cash flow from Financing Activities
Issue of bonds
20,000
Redemption of bonds
-12,000
Cash dividend paid
-15,000
Net cash used in Financing Activities
-7,000
Net increase in Cash and Cash Equivalents(I +II +III)
6,000
Add: Cash and cash equivalents in the beginning of the period
31,000
Cash and cash equivalents at the end of the period
37,000
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