Presented below are the financial statements of Kurtzel Company. KURTZEL COMPANY

Question

Presented below are the financial statements of Kurtzel Company. KURTZEL COMPANY Comparative Balance Sheets December 31 2014 2013 ssets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 57,020 39,914 57,020 $99,785 57,020 79,828 171,060 222,378 (91,232)(68,424) $316,461 $307,908 abilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $54,169 42,765 22,808 94,083 39,914 142,550 108,338 $307,908 19,957 48,467 51,318 $316,461 KURTZEL COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $689,942 498,925 191,017 $51,318 17,106 68,424 122,593 8,553 114,040 $ 91,232

Explanation / Answer

The statement of cash flows is given below:

Kurtzel Company Statement of Cash Flows For the Year Ended December, 2014 Cash Flow from Operating Activities Net Income $91,232 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities Depreciation Expense 49,892 Increase in Accounts Receivable (57,020 – 39,914) -17,106 Increase in Inventory (79,828 – 57,020) -22,808 Increase in Accounts Payable (54,169 – 42,765) 11,404 Decrease in Income Taxes Payable (19,957 – 22,808) -2,851 18,531 Net Cash Flow from Operating Activities (A) 1,09,763 Cash Flow from Investing Activities Proceeds from Sale of Equipment (B) $24,234 Cash Flow from Financing Actvities Dividends Declared and Paid -57,020 Redemeption of Bonds Payable (48,467 – 94,083) -45,616 Proceeds from Issuance of Common Stock (51,318 – 39,914) 11,404 Net Cash Flow from Financing Activities (C) -$91,232 Net Increase/Decrease in Cash (A+B+C) $42,765 Add Opening Cash Balance $57,020 Closing Cash Balance $99,785 (same as provided in the question)

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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