Fill out the blank statements above and categorize each activity into Operating,
ID: 2529729 • Letter: F
Question
Fill out the blank statements above and categorize each activity into Operating, Investing or Financial cash flow.
You are the controller of the Claire Underwood Corporation. On January 1, 2018, after the 2017 fiscal year has ended, you have the following information in front of you: December 31, Assets: 2017 2016 Cash $21,100 $15,600 Accounts receivable 1,000 850 Inventories 900 PP&E;, net 20,000 18,000 TOTAL ASSETS: 42,800 35,350 700 | Liabilities: Accounts payable Long-term debt TOTAL LIABILITIES: 350 il 800 13,000 13,800 10,000 10,350 55 50 Shareholders' Equity: Common stock Additional paid-in capital Retained earnings TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY: 5,545 23,400 29,000 4,550 20,400 25,000 42,800 35,350 During the fiscal year 2017, the following events occurred: 1. The company paid off $2,000 of its long-term debt during the year. In addition, the company borrowed $__ payable in 3 years. 2. Depreciation expense was $3,000. 3. The company purchased new PP&E; at the amount of $8,100, in cash. 4. The company sold PP&E; for $2,300 in cash. The net book value of PP&E; sold was $1,600. 5. The company recorded an impairment charge of $_ on its PP&E.; 6. The company issued 500 shares with a par value of $0.01 (per share). The share price was $2 per share and was paid to the company in cash. 7. Net income in 2017 was $3,500. 8. The company declared and paid dividends during 2017 at the amount of $ in cash.Explanation / Answer
Activity
2017
Operating
Investing
Financing
2016
Cash
Operating
21,100
15,600
Account Receivable
Operating
1,000
(150)
850
Inventories
Operating
700
200
900
PP&E , Net
Investing
20,000
(2000)
18000
Account Payable
Operating
(800)
500
(350)
Long Term Debt
Financing
(13000)
3000
(10000)
Common Stock
Financing
(55)
5
(50)
Additional Paid up Capital
Financing
(5,545)
995
(4550)
Retain Earning
Operating
(23,400)
3000
(20,400)
Total
3550
(2000)
4000
Note: Figures in Bracket are outflow of cash and other are inflow of cash.
Activity
2017
Operating
Investing
Financing
2016
Cash
Operating
21,100
15,600
Account Receivable
Operating
1,000
(150)
850
Inventories
Operating
700
200
900
PP&E , Net
Investing
20,000
(2000)
18000
Account Payable
Operating
(800)
500
(350)
Long Term Debt
Financing
(13000)
3000
(10000)
Common Stock
Financing
(55)
5
(50)
Additional Paid up Capital
Financing
(5,545)
995
(4550)
Retain Earning
Operating
(23,400)
3000
(20,400)
Total
3550
(2000)
4000
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