The following information is related to New Lane Company\'s fiscal year 2017. In
ID: 2391209 • Letter: T
Question
The following information is related to New Lane Company's fiscal year 2017.
Income Statement:
Net Income $300,000
Depreciation Expense 30,000
Loss on Sale of Plant Assets 10,000
Interest Expense 500
Balance Sheet - 12/31/17:
Accounts Payable Increase 4,000
Accounts Receivable Increase 5,000
Plant Assets - Purchased 200,000
Plant Assets – Proceeds
from sale 100,000
Additional Information:
Cash Balance - 12/31/2016: $50,000
Common Stock exchanged for outstanding Long-Term Notes Payable of $150,000
Dividends paid were $30,000
Use this information to prepare the Statement of Cash Flows for New Lane's Company using the indirect method.
Explanation / Answer
prepare the Statement of Cash Flows for New Lane's Company using the indirect method.
Cash flow from operating activities Net income 300000 Adjustment to reconcile net income Depreciation expense 30000 Loss on sale of plant assets 10000 Account payable increase 4000 Account receivable increase -5000 Net cash flow from operating activities 339000 Cash flow from investing activities Plant assets purchased -200000 Plant assets sold 100000 Net cash flow from investing activities -100000 Cash flow from financing activities Dividend paid -30000 Net cash flow from financing activities -30000 Net cash flow 209000 Beginning cash 50000 Ending cash 259000Related Questions
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