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

$29,860

$35,199

54,924

44,843

65,174

44,915

14,705

25,110

90,259

74,656

(17,596

(7,932

70,210

40,010

$307,536

$256,801

$65,042

$51,707

14,629

17,709

–0–

23,203

29,798

–0–

188,920

158,720

9,147

5,462

$307,536

$256,801

Land was acquired for $30,200 in exchange for common stock, par $30,200, during the year; all equipment purchased was for cash. Equipment costing $13,232 was sold for $3,310; book value of the equipment was $6,390. Cash dividends of $9,140 were declared and paid during the year.

Solve for:

a) Net cash (provided or used) by operating activites

b) Net cash (provided or used) by Financing Activities

c) Net cash (provided or used) by Investing Activities

2014

2013

Cash

$29,860

$35,199

Accounts receivable (net)

54,924

44,843

Inventory

65,174

44,915

Prepaid expenses

14,705

25,110

Equipment

90,259

74,656

Accumulated depreciation—equipment

(17,596

)

(7,932

) Land

70,210

40,010

TOTALS

$307,536

$256,801

Accounts payable

$65,042

$51,707

Accrued expenses

14,629

17,709

Notes payable—bank, long-term

–0–

23,203

Bonds payable

29,798

–0–

Common stock, $10 par

188,920

158,720

Retained earnings

9,147

5,462

TOTALS

$307,536

$256,801

Explanation / Answer

Net income during the year $( 307,536 - 256,801 +9,140) = $ 59875

Cash flow statement for the year ended....2014

$ $ Net Income 12,825 Add depreciation expense 16,506 Loss on sale of equipment 3,080 19,586 Operating profit before adjustments for working capital changes 32,411 Increase in accounts receivable (10,081) Increase in inventory (20,259) Decrease in prepaid expenses 10,405 Increase in accounts payable 13,335 Decrease in accrued expenses (3,080) (9,680) Net cash flows from operating activities 22,731 Cash flows from investing activities Purchase of equipment (28,835) Disposal of equipment 3,310 Net cash used in investing activities (25,525) Cash flows from financing activities Issue of bonds payable 29,798 Dividends paid (9,140) Retirement of notes payable (23,203) Net cash used in financing activities (2,545) Net decrease in cash (5,339)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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