Guadiana Corporation Comparative Balance Sheet Ending Balance, Beginning Balance

Question

Guadiana Corporation

Comparative Balance Sheet
Ending Balance, Beginning Balance
Assets
Cash and cash equivalents $27, $23
Accounts receivable 64, 58
Inventory 65, 58
Plant and Equipment 625, 520
Less accumulated depreciation 235, 212
Total Assets 546, 447

Liabilities and stockholders equity
Accounts payable $57, $50
Wages payable 24, 22
Taxes payable 21, 22
Bonds payable 141, 150
Deferred taxes 15, 19
Common stock 33, 30
Retained earnings 255, 154
Total Liabilities and 546, 447
stockholder equity

Income Statement
Sales $911
Cost of goods sold 602
Gross margin 309
Selling and administrative 125
expenses
net operating income 184
Gain on slae of plant 9
and equipment
Income before taxes 193
Income taxes 58
net income 135

cash dividends paid were $34. The company sold equipment for $11 that was originally purchase for $5
and that had accumulated depreciation of $3.
Prepare Statemnet of cash flows... I know tha net cash provided by operation is 143. So operating activities is what I am having a problem adding up.

Explanation / Answer

Cash flow Statement (Indirect method)

Cash flow Statement (Indirect method)

Cash flow from operating activities: Net income $135 Depreciation $23 Increase in accounts receivables ($6) Increase in inventory ($7) Increase in accounts payable $7 Increase in wages payable $2 Decrease in tax payable ($1) Profit on sale of equipment ($9) Deferred tax decrease ($4 - $3) ($1) (Less: Depreciation on equipment$3) Net cash flow from operating activities: $143 Cash flow from Investing activities: Purchase of equipment ($110) sale of equipment $11 Net cash flow from Investing activities: $44 Cash flow from Financing activities: Issue of common stock $3 Bonds repayment ($9) Devidends paid ($34) Net cash flow from Financing activities: $4 Add: opening cash balance $23 Closing cash balance $27

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.