Presented below are the 2018 income statement and comparative balance sheets for

Question

Presented below are the 2018 income statement and comparative balance sheets for Santana Industries SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in thousands) Sales revenue Service revenue $ 14,850 4,000 Total revenue $18,850 Operating expenses: Cost of goods sold Selling General and administrative 7,500 2,700 1,800 12,000 6,850 230 6,620 2,800 $ 3,820 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income Dec. 31, Dec. 31, 2018 2017 Balance Sheet Information ( in thousands) Assets Cash Accounts receivable Inventory Prepaid rent Plant and equipment $ 7,650 2,470 2,500 3,300 360 12,600 3,100 4,600 180 15,100 Less: Accumulated depreciation (5,400 (4,800) Total assets $25,230 $16,430 Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred service revenue Income taxes payable Loan payable (due 12/31/2020) Common stock Retained earnings $ 2,000 130 860 580 5,600 10,300 1,400 630 860 10,300 5,760 ,40 Total liabilities and shareholders' equity $25,230 $16,430

Explanation / Answer

SANTANA INDUSTRIES Statement of cash flows For the year ended december 31,2018 Cash flow from operating activities net income for the year 3,820 Adjustments to reconcile net income to cash from operating activities Depreciation expense 1,900 increase in accounts receivable -600 increase in inventory -1300 decrease in prepaid rent 180 increase in accounts payable 600 increase in interest payable 130 increase in deferred service revenue 230 decrease In income taxes payable -280 net cash flow from operating activities 4,680 Cash flow from investing activities cash from sale of Equipment 800 purchase of Equipment -4,600 net cash outflow from investing activities -3,800 Cash flow from financing activities cash from loan payable 5,600 cash dividend -1,300 net cash flow from financing activities 4,300 4,300 Net increase in cash 5,180 Cash at the beginning 2,470 cash at year end 7,650

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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