The 2018 comparative balance sheet and income statement of Atkinson Group, Inc.

Question

The 2018 comparative balance sheet and income statement of Atkinson Group, Inc. follow. Atkinson disposed of a plant asset at book value during 2018 EEB (Click the icon to view the comparative balance sheet) EEE (Click the icon to iew the income statement.) Prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activities by the indirect method. A plant asset was disposed of for S0. The cost and accumulated depreciation of the disposed asset was $12,300. There were no sales of land, no retirement of common stock, and no treasury stock transactions. Assume plant asset and land acquisitions were for cash. Use the transaction references in Panel B when selecting the transaction references in Panel A. (If a box is not used in the spreadsheet, leave the box empty, do not select a label or enter a zero. Do not check your answer until both Panel A and Panel B have been completed.) Atkinson Group, Inc. Spreadsheet for Statement of Cash Flows Year Ended December 31, 2018 Transaction Analysis Balance 12/31/2017 S 15,600 Balance Panel A Balance Sheet: DEBIT CREDIT 12/31/2018 Cash Accounts Receivable Merchandise Inventory Land 43,500 93,000 (d) 15,000 () (m) 11,100 42,500 96,900 40,100

Explanation / Answer

Atkinson Group, Inc. Spreadsheet for Statement of Cash Flows Year Ended December 31, 2018 Panet A-Balance Sheet: Balance 12/31/2017 Transaction Analysis Balance 12/31/2018 DEBIT CREDIT Cash 15600 4500 11100 Accounts receivable 43500 1000 42500 Merchandise inventory 93000 3900 96900 Land 15000 25100 40100 Plant assets 111460 22500 12300 121660 Accumulated depreciation-plant assets -17560 12300 15000 -20260 Total assets 261000 292000 Accounts payable 26300 1700 24600 Accrued liabilities 22900 1200 24100 Notes payable 67000 13000 54000 Total liabilities 116200 102700 Common stock 125500 8000 133500 Retained earnings 19300 28700 65200 55800 Total liabilities and stockholders' equity 261000 107200 107200 292000 Panel B-Statement of Cash Flows: Cash flows from operating activities: Net income 65200 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 15000 Decrease in accounts receivable 1000 Increase in merchandise inventory 3900 Decrease in accounts payable 1700 Increase in accrued liabilities 1200 Net cash provided by operating activities Cash flows from investing activities: Cash payment for acquisition of plant assets 22500 Cash payment for acquisition of land 25100 Net cash used for investing activities Cash flows from financing activities: Cash payment of notes payable 13000 Cash receipt from issuance of common stock 8000 Cash payment of dividends 28700 Net cash used for financing activities Net decrease in cash 4500 Non-cash investing and financing activities: Disposal of plant asset at book value 12300 Total non-cash investing and financing activities 12300 Total 107200 107200

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