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The balance sheet for Bostick Corporation? follows: Ending balance Beginning bal

ID: 2395973 • Letter: T

Question

The balance sheet for Bostick Corporation? follows:

Ending balance

Beginning balance

?Assets:

Current? assets:

Cash and cash equivalents

$52,600

?$44,600

Accounts receivable

$18,300

?$22,300

Inventory

$48,500

?$53,000

Total current assets

$119,400

?$119,900

?Property, plant, and equipment

?$287,800

?$275,300

Less accumulated depreciation

$109,000

?$101,550

Net? property, plant, and equipment

$178,800

?$173,750

Total assets

$298,200

?$293,650

Liabilities and? stockholders' equity:

Current? liabilities:

Accounts payable

?$26,030

?$29,580

Wages payable

?$41,600

?$47,100

Other accounts payable

$42,200

?$35,400

Notes payable

?$24,200

?$25,200

Total current liabilities

$134,030

?$137,280

Longminus?term

?$73,500

?$79,500

Deferred income taxes

$19,500

?$17,000

Total liabilities

$227,030

?$96,500

?Stockholders' equity:

Common stock

$46,750

?$45,000

Retained earnings

$24,420

?$14,870

Total? stockholders' equity

$71,170

?$59,870

Total liabilities and? stockholders' equity

$298,200

?$293,650

Operating income during the period was $20,450?, while cash dividends paid were $10,900. The total sources of cash at Bostick Corporation during the year was?

Ending balance

Beginning balance

?Assets:

Current? assets:

Cash and cash equivalents

$52,600

?$44,600

Accounts receivable

$18,300

?$22,300

Inventory

$48,500

?$53,000

Total current assets

$119,400

?$119,900

?Property, plant, and equipment

?$287,800

?$275,300

Less accumulated depreciation

$109,000

?$101,550

Net? property, plant, and equipment

$178,800

?$173,750

Total assets

$298,200

?$293,650

Liabilities and? stockholders' equity:

Current? liabilities:

Accounts payable

?$26,030

?$29,580

Wages payable

?$41,600

?$47,100

Other accounts payable

$42,200

?$35,400

Notes payable

?$24,200

?$25,200

Total current liabilities

$134,030

?$137,280

Longminus?term

debt

?$73,500

?$79,500

Deferred income taxes

$19,500

?$17,000

Total liabilities

$227,030

?$96,500

?Stockholders' equity:

Common stock

$46,750

?$45,000

Retained earnings

$24,420

?$14,870

Total? stockholders' equity

$71,170

?$59,870

Total liabilities and? stockholders' equity

$298,200

?$293,650

Explanation / Answer

Cash inflow from operating activities $35,650

Cash outflow from investing activities -$12,500

Cash outflow from financing activities -$15,150

Net cash flow for the year $8,000

Working:

BOSTIC CORPORATION Cash flow statement Cash flow from operating activities: Operating income 20450 Adjustment for non cash items    Depreciation expense * 7450 Adjustment for changes in working capital    Decrease in accounts receivable 4000    Decrease in inventory 5000    Decrease in accounts payable -3550    Decrease in wages payable -5500    Increase in other accounts payable 6800    Decrease in notes payable 1000 7750 Cash flow from operating activities 35650 Cash flow from investing activities :    Purchase of property , plant and equipment ** -12500 Cash flow from investing activities -12500 Cash flow from financing activities:    Repayment of long term liabilities (73,500 - 79,500) -6000    Dividends paid *** -10900    Issue of comon stock (46,750 - 45,000) 1750 Cash flow from financing activities -15150 Cash addition 8000 Beginning cash balance 44600 Ending cash balance 52600 Accumulated depreciation, ending 109000 Less: Accumulated depreciation, beginning 101550 Depreciation expense for the year * 7450 Property, plant and equipment, ending 287800 Less: Property, plant and equipment, beginning 275300 Purchase of property , plant and equipment ** 12500 Retained earnings , beginning 14870 Add: Net operating income 20450 Total 35320 Retained earnings , ending 24420 Cash dividends paid *** 10900
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