The income statement and additional data of Daily ?Plus, Inc.? follows: a. Acqui
ID: 2412461 • Letter: T
Question
The income statement and additional data of Daily ?Plus, Inc.? follows:
a.
Acquisition of plant assets is $116,000.
Of this? amount, $106,000 is paid in cash and $10,000 by signing a note payable.
b.
Cash receipt from sale of land totals $21,000.There was no gain or loss.
c.
Cash receipts from issuance of common stock total $34,000.
d.
Payment of note payable is $9,000.
e.
Payment of dividends is $12,000.
f.
From the balance? sheet:
September 30
2018
2017
Cash
$35,000
$15,000
Accounts Receivable
42,000
51,000
Merchandise Inventory
89,000
82,000
Land
74,000
95,000
Plant Assets
201,000
85,000
Accumulated Depreciation
(48,000)
(24,000)
Accounts Payable
36,000
27,000
Accrued Liabilities
17,000
27,000
Notes Payable (long-term)
10,000
9,000
Common Stock, no par
41,000
7,000
Retained Earnings
289,000
234,000
Daily Plus, Inc.
Income Statement
Year Ended September 30, 2018
Net Sales Revenue
$237,000
Cost of Goods Sold
92,000
Gross Profit
145,000
Operating Expenses:
Salaries Expense
$50,000
Depreciation Expense—Plant Assets
24,000
Total Operating Expenses
74,000
Net Income Before Income Taxes
71,000
Income Tax Expense
4,000
Net Income
$67,000
Prepare Daily ?Plus's statement of cash flows for the year ended September ?30, 2018?, using the indirect method. Include a separate section for? non-cash investing and financing activities.
Complete the statement one section at a? time, beginning with the cash flows from operating activities. ?(Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the? statement, leave the box? empty; do not select a label or enter a? zero.)
Daily Plus, Inc.
Statement of Cash Flows
Year Ended September 30, 2018
Cash Flows from Operating Activities: ____________
Net Income
Adjustments to Reconcile Net Income to Net Cash
Provided by (Used for) Operating Activities:
BUNCH OF BLANKS
Net Cash Provided by (Used for) Operating Activities __________
Cash Flows from Investing Activities:
BUNCH OF BLANKS
Net Cash Provided by (Used for) Investing Activities __________
Cash Flows from Financing Activities:
BUNCH OF BLANKS
Net Cash Provided by (Used for) Financing Activities ___________
Net Increase (Decrease) in Cash ___________
Cash Balance, September 30, 2017 ___________
Cash Balance, September 30, 2018 ___________
Non-cash Investing and Financing Activities:
TWO LINES OF BLANKS
Total Non-cash Investing and Financing Activities ___________
a.
Acquisition of plant assets is $116,000.
Of this? amount, $106,000 is paid in cash and $10,000 by signing a note payable.
b.
Cash receipt from sale of land totals $21,000.There was no gain or loss.
c.
Cash receipts from issuance of common stock total $34,000.
d.
Payment of note payable is $9,000.
e.
Payment of dividends is $12,000.
f.
From the balance? sheet:
Explanation / Answer
Solution:
Statement of Cash Flows - Daily Plus Inc.For the year ended Sep 30, 2018 Particulars Details Amount Cash Flow from Operating Activities: Net Income $67,000.00 Adjustments to reconcile net income to cash flow from operating activities: Depreciation $24,000.00 Decrease in Accounts Receivables ($51,000 - $42,000) $9,000.00 Increase in Inventory ($89,000 - $82,000) -$7,000.00 Increase in Accounts payable ($36,000 - $27,000) $9,000.00 Decrease in Accrued Liabilities ($27,000 - $17,000) -$10,000.00 Total Adjustments $25,000.00 Net Cash Flow From Operating Activites (A) $92,000.00 Cash Flow from Investing Activities: Cash received from sale of land $21,000.00 Acquistion of Plant Assets -$106,000.00 Net Cash Flow From Investing Activites (B) -$85,000.00 Cash Flow from Financing Activities: Dividend paid -$12,000.00 Payment of long term note -$9,000.00 Proceed from issue of common stock $34,000.00 Net Cash Flow From Financing Activites (C) $13,000.00 Total Cash flow from all activities (A+B+C) $20,000.00 Cash at the beginning of the year $15,000.00 Cash at the end of year $35,000.00 Non Cash investing & Financing Activities: Purchase of machine by issuing long term note $10,000.00
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