The balance sheet data of Brown Company at the end of 2014 and 2013 are shown be

Question

The balance sheet data of Brown Company at the end of 2014 and 2013 are shown below.

2014

2013

$29,986

$34,696

54,621

45,079

65,152

45,420

14,534

24,736

89,582

75,284

(17,643

(8,250

69,890

40,220

$306,122

$257,185

$64,787

$51,635

15,048

17,852

–0–

23,363

29,833

–0–

189,430

159,760

7,024

4,575

$306,122

$257,185

Land was acquired for $29,670 in exchange for common stock, par $29,670, during the year; all equipment purchased was for cash. Equipment costing $12,837 was sold for $3,380; book value of the equipment was $6,480. Cash dividends of $8,710 were declared and paid during the year.

Can someone please help. I keep getting stuck on this question. Thanks.

2014

2013

Cash

$29,986

$34,696

Accounts receivable (net)

54,621

45,079

Inventory

65,152

45,420

Prepaid expenses

14,534

24,736

Equipment

89,582

75,284

Accumulated depreciation—equipment

(17,643

)

(8,250

) Land

69,890

40,220

$306,122

$257,185

Accounts payable

$64,787

$51,635

Accrued expenses

15,048

17,852

Notes payable—bank, long-term

–0–

23,363

Bonds payable

29,833

–0–

Common stock, $10 par

189,430

159,760

Retained earnings

7,024

4,575

$306,122

$257,185

Explanation / Answer

Cash Flow Statement Particulars Amount ($) Cash flow from operating activities Net Income           11,159 Adjustments to reconcile net income to net cash flow from operating activities: Add: Non Cash Expense Depreciation             9,393 Non Operating Gains/Loss: Loss on sale of equipment             3,100 Changes in Current Assets and Liabilities Less: Increase in current assets Account Receivable          (9,542) Inventory        (19,732) Add: decease in current assets Prepaid Expenses          10,202 Add: Increase in current liabilities Account Payable          13,152 Less: decrease in current liabilities Accrued Expenses Payable          (2,804)           (8,724) cash generated from operating activities           14,928 Cash flow from investing activities Sale of Equipment             3,380 Purchase of Equipment        (27,135)        (23,755) Cash flow from financing activities Issue of Bonds          29,833 Payment of Notes Payable - Long term        (23,363) Payment of Dividend          (8,710)           (2,240) Total Cash Flow Add: beginning Cash           34,696 Cash at the end           29,986

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