PUFFY LTD. Statement of Financial Position Assets Cash Accounts receivable Merch

ID: 2513771 • Letter: P

Question

PUFFY LTD. Statement of Financial Position Assets Cash Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets 2015 2014 $52,400 $21,790 75,920 180,390 186,340 71,650 103,230 263,470 196,330 (66,670) (30,790) $581,320 $552,820 80,080 Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $581,320 $40,50 $47,980 141,910 198,900 201,800 172,340 197,050 133,600 $552.820 Additional information: 1. Profit was $108,100 2. Sales were $972,770 3. Cost of goods sold was $750,870 4. Operating expenses were $43,500, exclusive of depreciation expense 5. Depreciation expense was $35,880 6. Interest expense was $14,660 7. Income tax expense was $24,510 8. Land was sold at a gain of $4,750 9. No equipment was sold during the year 10. 11. $56,990 of the bank loan was repaid during the year Common shares were issued for $29,460 Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Explanation / Answer

Answers

Cash flows from Operating Activities

Cash receipts from Customers

$ 9,68,610.00

Cash payments:

Cash paid to accounts payables/suppliers

$ 7,52,340.00

For operating expenses

$ 43,500.00

For Interest

$ 14,660.00

For Income tax

$ 24,510.00

$ 8,35,010.00

Net Cash provided by operating activities

$ 1,33,600.00

Cash flows from Investing activities

Sale of Land

$ 36,330.00

Purchase of Equipment

$ (67,140.00)

Net cash used by investing activities

$ (30,810.00)

cash flows from Financing activities

Repayment of Bank Loan

$ (56,990.00)

payment of cash dividends

$ (44,650.00)

Issue of common shares

$ 29,460.00

Net cash used by financing activities

$ (72,180.00)

Net increase in cash

$ 30,610.00

Cash january 1

$ 21,790.00

Cash Dec 31

$ 52,400.00