MESSAGE MY INSTRUCTOR FULL 5 Problem 13-9A Your answer is partially correct. Try

ID: 2402189 • Letter: M

Question

MESSAGE MY INSTRUCTOR FULL 5 Problem 13-9A Your answer is partially correct. Try again. Condensed financial data of Cheng Inc. follow CHENG INC Comparative Balance Sheets December 31 2016 $48,400 Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment $80,800 117,500 143,000 2017 92,800 28,400 33,000 102,850 26,000 114,000 242,500 (52,000) 270,000 (50,000) Total $682,500 $514,750 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $67,300 17,000 150,000 175,000 224,000 105,450 $682.500 $514.750 16,500 110,000 220,000 Total CHENG INC Income Statement For the Year Ended December 31, 2017 Sales revenue Less $392,780 Cost of goods sold $135,460 All Rights Reserved. A Division of 2ohn Wiley& So

Explanation / Answer

Answers

Cash Flows from Operating Activities

Net Income

$ 158,900.00

Adjustments to reconcile Net Income to

Net Cash provided by Operating Activity

Depreciation expense

$ 46,500.00

Loss on disposal of plant asset

$ 7,500.00

Increase in Accounts receivables

$ (59,800.00)

Increase in Inventory

$ (14,650.00)

Increase in Prepaid Expenses

$ (2,400.00)

Increase in Accounts payable

$ 44,700.00

Decrease in Accrued Expense payable

$ (500.00)

$ 21,350.00

Net Cash provided by Operating Activities

$ 180,250.00

Cash Flows from Investing Activities

Equipment purchased

$ (85,000.00)

Equipment sold

$ 1,500.00

Investment purchased

$ (29,000.00)

Net Cash used by Investing activities

$ (112,500.00)

Cash Flows from Financing activities

Bonds Payable redeeemed

$ (40,000.00)

Common Stock issued

$ 45,000.00

Dividend paid

$ (40,350.00)

Net Cash used by Financing activities

$ (35,350.00)

Net Increase in Cash

$ 32,400.00

Beginning Cash balance

$ 48,400.00

Ending Cash balance

$ 80,800.00