Hunter Company is developing its annual financial statements at December 31, 201

Question

Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2015 2014 Balance Sheet at December 31 $ 44,110 $17,500 28,000 35,000 101,000 Accumulated Depreciation-Equipment (36,600) (29,500) Cash Accounts Receivable Inventory Equipment 26,100 29,100 109,900 $172,610 $152,000 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings S 24,400 810 35,000 79,500 32,900 $ 21,500 1,000 47,000 59,000 23,500 $172,610 $152,000 Income Statement for 2015 Sales Revenue Cost of Goods Sold Other Expenses $111,000 66,500 31,400 Net Income $ 13,100 Additional Data a. Bought equipment for cash, $8,900. b. Paid $12,000 on the long-term note payable C. Issued new shares of stock for $20,500 cash. d. Declared and paid a $3,700 cash dividend e. Other expenses included depreciation, $7,100; salaries and wages, $11,100; taxes, $4,100; utilities, $9,100 f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.

Explanation / Answer

HUNTER COMPANY Statement of Cash flows For the Year ended December 31,2015 Cash flows from Operating activities Net income $13,100.00 Adjustments to Reconcile Net Income to net Cash provided by Operating activities Depreciation $7,100.00 Decrease in Accounts Receivable $1,900.00 Decrease in Inventory $5,900.00 Increase in Accounts Payable $2,900.00 Decrease in Salaries and Wages Payable -$190.00 $17,610.00 Net Cash available from operating activities $30,710.00 Cash flows from Investing activities Purchase of Equipment -$8,900.00 Net cash used for Investing activities -$8,900.00 Cash flows from Financing activities Long note payable paid -$12,000.00 Issue of new shares $20,500.00 Dividend paid -$3,700.00 Net Cash available from Financing activities $4,800.00 Net Cash surplus / (deficit) $26,610.00 Add : Cash balance 2014 $17,500.00 Cash balance 2015 $44,110.00

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