Dec. 31, 2016 Dec. 31, 2015 Assets 5964,930.00 762860.00 1.162,780.00 6,010.00 4

Question

Dec. 31, 2016 Dec. 31, 2015 Assets 5964,930.00 762860.00 1.162,780.00 6,010.00 430,690.00 01470.00 409,170.00) 8269000) 53,680.00 159,400.00) 4781780.00 $4.220,330.00 917.690.00 828,620.00 1267,970.00 9050.00 15,250.00 462.990.00 Cash Accounts receivable (net s Inventories Prepaid expenses Land Buildings 3Equipment 11480.00 142,100.00) Totalassets Liabilities and Stockholders Equity 923,380.00 69000.00 3000.00 71200.00 495.200.00 2585,790.00 58,540.00 34 | Accounts payable (merchandise creditors) 15 Bonds payable s6 Common stock, $25 par 17 Paid-in capital: Excess of issue price over par-common stock 0.00 558,000.00 Retained eanings Total Liabilities and stockholders equity 4.781,780.00 $4.220,330.00 The nancurrent asset, nancurrent lability, and stockholders" equity accounts for 2016 are as tollows ACCOUNT Land ACCOUNT NO Balance tem Dedit Credt DeCredt 2016 an1 a ance Apr. 20 Rea zed 5153,400 cash trom 165,440315250 ACCOUNT Buidings ACCOUNT NO Balance tem Debt Credt DetCredt 2016 an1 a ance Apr. 20 Acquired for cash 551,52 901,470

Explanation / Answer

Statement of cash flows for the year ended December 31, 2016 Cash flow from operations: Net income / (loss) for the year -58980 Adjustments for non-cash operating items:     Depreciation expense     (Note 1) 55450     Loss on sale of land           (Note 2) 12040 Adjustments for changes in curent assets and liabilities:     Increase in accounts receivables -65760     Increase in inventories -105190     Decrease in prepaid expenses 6960     Decrease in accounts payable -35160 -131660 Net cash flow from / (used in ) operating activities -190640 Cash flow from investing activities:     Cash received from land sold 153400     Cash paid for acquisition of building -561520     Cash paid for acquisition of equipment -104070 Net cash flow from / (used in) investing activities -512190 Cash flow from financing activities:      Cash received from issuance of bonds payable 269000      Cash received from issuance of common stock (Note 3) 418200      Payment of cash dividends -31610 Net cash flow from / (used in) financing activities 655590 Net cash flow -47240 Cash balance at January 1, 2016 964930 Cash balance at December 31, 2016 917690 1. Depreciation Expense     Depreciation on building 26480     Depreciation equipment 28970 55450 2. Loss on sale of land      Credit entry in land account 165440      Cash received on sale 153400 12040 3. Cash received from issuance of common stock      Par value of 8,200 shares 205000     APIC on 8,200 shares (8,200 x 26) 213200    Cash received on issue of common stock 418200

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