The following are Nash Corp.’s comparative balance sheet accounts at December 31
ID: 2529237 • Letter: T
Question
The following are Nash Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.
COMPARATIVE BALANCE SHEETS
2017
2016
Increase
(Decrease)
$815,800
$705,800
$110,000
1,130,300
1,166,700
(36,400
)
1,855,300
1,726,900
128,400
3,299,700
2,983,700
316,000
(1,175,500
)
(1,031,700
)
(143,800
)
310,800
272,900
37,900
249,100
—
249,100
$6,485,500
$5,824,300
$661,200
$1,005,600
$946,600
$59,000
29,700
50,400
(20,700
)
80,300
99,200
(18,900
)
376,400
—
376,400
500,000
500,000
—
1,487,600
1,487,600
—
3,005,900
2,740,500
265,400
$6,485,500
$5,824,300
$661,200
Additional information:
2017
2016
Prepare a statement of cash flows for Nash Corp. for the year ended December 31, 2017, using the indirect method.
COMPARATIVE BALANCE SHEETS
2017
2016
Increase
(Decrease)
$815,800
$705,800
$110,000
Accounts receivable1,130,300
1,166,700
(36,400
)
Inventory1,855,300
1,726,900
128,400
Property, plant, and equipment3,299,700
2,983,700
316,000
Accumulated depreciation(1,175,500
)
(1,031,700
)
(143,800
)
Investment in Myers Co.310,800
272,900
37,900
Loan receivable249,100
—
249,100
Total assets$6,485,500
$5,824,300
$661,200
Accounts payable$1,005,600
$946,600
$59,000
Income taxes payable29,700
50,400
(20,700
)
Dividends payable80,300
99,200
(18,900
)
Lease liabililty376,400
—
376,400
Common stock, $1 par500,000
500,000
—
Paid-in capital in excess of par—common stock1,487,600
1,487,600
—
Retained earnings3,005,900
2,740,500
265,400
Total liabilities and stockholders’ equity$6,485,500
$5,824,300
$661,200
Explanation / Answer
Nash Corp's Statement of Cash flows for the year ended 31 December 2017 Year ended 31 March 2017 Cash flow from operating activities Profit before tax 345,700 Adjustments for: Depreciation 143,800 Interest income (13,810) Proposed dividend for current year 80,300 Provision for tax made during the year 29,700 Income from Investment (37,900) Profit on sale of FA (2,200) Operating loss before working capital changes 545,590 Changes in working capital Increase/(Decrease) in trade payables 59,000 Decrease/ (increase) in inventories (128,400) Decrease/ (increase) in trade receivables 36,400 Increase/(Decrease) in other current liabilities Increase/(Decrease) in non-current liabilities Increase/(Decrease) in other financial liabilities Decrease/ (increase) in other financial assets (249,100) Decrease/ (increase) in other current assets Decrease/ (increase) in non-current assets Cash generated used in operations 263,490 Income tax paid 50,400 Net cash flows used in operating activities (A) 213,090 Cash flow from Investing activities Payment for property, plant and equipment and intangible assets (433,900) Proceeds from sale/ disposal of fixed assets 39,800 Net proceeds from fixed deposits Interest received 13,810 Net cash flow from investing activities (B) (380,290) Cash flow from Financing activities Capital Lease for building 376,400 Dividend Paid (99,200) Net cash flow from financing activities (C) 277,200 Net increase in cash and cash equivalents (A+B+C) 110,000 Cash and cash equivalents at the beginning of the year 705,800 Cash and cash equivalents at the end of the year 815,800
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