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The following balances are available for Chrisman Company: December 31 2014 2013

ID: 2474217 • Letter: T

Question

The following balances are available for Chrisman Company: December 31 2014 2013 Cash $13,100 $16,400 Accounts receivable 32,800 24,600 Inventory 26,000 43,400 Prepaid rent 14,700 9,800 Land 122,800 122,800 Plant and equipment 655,000 491,300 Accumulated depreciation (106,400) (49,100) Totals $758,000 $659,200 Accounts payable $19,700 $16,400 Income taxes payable 4,900 8,200 Short-term notes payable 57,300 40,900 Bonds payable 123,000 164,000 Common stock 327,500 245,600 Retained earnings 225,600 184,100 Totals $758,000 $659,200 Bonds were retired during 2014 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $57,300. Net income was reported at $41,500.

Required: Hide 1. Prepare a statement of cash flows for 2014 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash. Chrisman Company Statement of Cash Flows For the Year Ended December 31, 2014 Cash Flows from Operating Activities Net income $ 41,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 57,300 Increase in accounts receivable (8,200) Decrease in inventory 17,400 Increase in prepaid rent (4,900) Increase in accounts payable 3,300 Decrease in income taxes payable (3,300) Net cash provided by operating activities $ 103,100 Cash Flows from Investing Activities Acquisition of plant and equipment $ (163,700) Cash Flows from Financing Activities Retirement of bonds payable $ (41,000) Issuance of short-term notes payable 16,400 Issuance of common stock 81,900 Net cash provided by financing activities $ 57,300 Net decrease in cash $ (3,300) Cash balance, December 31, 2013 Cash balance, December 31, 2014

Need help finding the Cash balance for 2013 and 2014. Thank You

Explanation / Answer

Cash balance

2014

2013

Net cash provided by operating activities (O)

$103,100

Cash flows from investing activities (I)

($163,700)

Net cash provided by financing activities (F)

$57,300

Net decrease in cash (O + I + F)

($3,300)

Add: Beginning cash (Balance as of 31/12/2013)

$16,400

Ending cash or cash balance

$13,100

$16,400

2014

2013

Net cash provided by operating activities (O)

$103,100

Cash flows from investing activities (I)

($163,700)

Net cash provided by financing activities (F)

$57,300

Net decrease in cash (O + I + F)

($3,300)

Add: Beginning cash (Balance as of 31/12/2013)

$16,400

Ending cash or cash balance

$13,100

$16,400

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