balance sheet of LSCCC, Inc. at LBcce, unec be sheet o .Inc. at December 31, 201

Question

balance sheet of LSCCC, Inc. at LBcce, unec be sheet o .Inc. at December 31, 2016 and 2015, is as folows: Dec. 31,2016 Dec 31, 2015 Assets Cash Accounts recelvable (net) Merchandise inventory Prepald expenses Equipment Accumulated deprecdation-equipment $51,130 78,560 112,230 4,570 228,610 (59.440) $415,660 $62,460 84,200 104,350 3,160 186,970 (45,850) $395,290 Total Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital: Excess of Issue price over par-common stock Retained earnings $82,620 118,590 8,000 111,000 75,080 $395,290 $87.290 13,000 186,000 129,370 $415,660 Total Additional data obtained from the income statement and from an examination of the accounts in the ledger for 201 are as follows: a. Net income, $138,980 b. Depredation reported on the income statement, $29,110. c.Equipment was purchased at a cost of $57,160, and fully depredated equipment costing $15,520 was discarde with no salvage realzed. d. The mortgage note payable was not due until 2018, but the terms permitted eartler payment without penalty. e. 5,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $84,690. Required: repare a statement of cash flows, using the indirect metho? et method

Explanation / Answer

Cash flow statement using Indirect Method For the year ended December 31,2016 Cash flow from Operarting activities Net Income $138,980.00 Adjustments to Net Income Depreciation $29,110.00 Changes in working capital Decrease in Accounts Receivables $5,640.00 Increase in Inventory -$7,880.00 Increase in Prepaid Expenses -$1,410.00 Increase in Accounts Payable $4,670.00 $30,130.00 Net Cash available from Operating activities $169,110.00 Cash flow from Investing activities Sale of plant assets Purchase of equipment -$57,160.00 Net cash used for Investing activities -$57,160.00 Cash flow from financing activities Repayment of Mortgage Note Payable -$118,590.00 Issue of common stock $80,000.00 Dividend paid -$84,690.00 Net Cash available from Financing activities -$123,280.00 Net cash surplus / (deficit) -$11,330.00 Add : Cash balance as on Dec.31,2015 $62,460.00 Ending Cash balance as on Dec.31,2016 $51,130.00

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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