please can you explain me detailed each step for knowing how to do it Pr. 5-127-
ID: 2531493 • Letter: P
Question
please can you explain me detailed each step for knowing how to do it
Pr. 5-127-Statement of cash flows preparation Selected financial statement information and additional data for Stanislaus Co. is presented below. Prepare a statement of cash flows for the year ending December 31, 2016 December 31 2015 2016 Land 63,800 21,000 789,600 201,600 151,200 63,000 856,80o £1,226,400 Cash 32,00o TOTAL t487,200 205,800 302,400 29,400 86,000 115,600 1,226,400 Retained earnings ....67,200 Notes payable - Short-term (trade). 67,200 84,000 856,800 Additional data for 2016: 1. Net income was 215,200 2. Depreciation was 31,60o. 3. Land was sold at its original cost. 4. Dividends of 76,600 were paid. 5. Equipment was purchased for 84,000 cash. 6. A long-term note for 201,600 was used to pay for an equipment purchase. 7. Ordinary shares were issued to pay a 67,200 long-term note payable.Explanation / Answer
CASH FLOW STATEMENT: Cash flow statement: Net inccome for the year 215200 Adjustment required Depreciation (115600-84000) 31600 Increase in Inventory -28600 Increase in accounts receivable -67200 Incrase in Accounts payable 35600 Decrease in short term notes payable -37800 Net provided from operating activitites 148800 Cash flows ffrom investing activities: Sale of land 42800 Purchasse of equipment for cash -84000 Net cash used in Investing activites -41200 Cash flows from Financing activities: Dividend paid -76600 Net cash used in financing activities -76600 Net cash increase 31000 Add: Beginning balance of cash 32000 Ending balance in cash 63000 Note: Notes issued for purchase of Equipment and Common stock issue for satisfaction of notes payable is Non cash transactions.
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