Need help filling in the rest of this cash flows statement Homework 2-ACC 300r50

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Need help filling in the rest of this cash flows statement

Homework 2-ACC 300r50o Statement of Cash Flows Seymour-Johnson, Inc. Comparative Balance Sheet December 31, 2018 and 2017 Seymour-Johnson, Inc. Income Statement For the Year Ended December 31, 2018 2018 2017 S 370,600 161,500 209,100 63,400 29,600 13,500 8,500) ASSETS Cost of goods sold Gross profit Salaries expense Current assets Cash and cash equivalents Accounts receivable Interest receivable nventory Prepaid expenses S 48,700 S 7,600 44,000 2,800 116,900 9,300 190,600 es 121,700 8,600 225,000 nterest expense Depreciation expense Income from operations Other revenues and gains Total current assets Long-term investments 10,900 7,300 112,300 (18,400) Gain on sale of land 55,400 Interest revenue Income before income taxes ncome tax expense Net Income Investments Pro lant, and equipment Equipment (net) Total assets 93,000 49,700 S450,700 351,400 80,800 89,500 5 93,900 Liabilities and Stockholders' Equit Current liabilities Additional Information: A. Sold land for S38,100 B. Purchased equipment by issuing a long-term note payable, S26,300 C. Purchased equipment by issuing a short-term note payable, S22,000 D. Paid long-term note payable, S24,700 E. Common Stock was issued in exchange for land S 61,800 S 17,900 22,000 70,300 Accounts payable Accrued liabilities Note payable, short-term 29,100 3,200 24,600 Income tax payable Total current assets 21,800 129,500 128,300 Long-term Liabilities Notes payable, long-term 62,900 192,400 Total liabilities 189,600 Stockholders' equ Common stock Retained earnings 90,200 71,600 161,800 S450,700 351,400 157,100 101,200 258,300 Total Stockholders Equity Total Liabilities& Stockholders' Equity

Explanation / Answer

Statement of Cash Flows

For the year Ended December 31, 2018 (Amounts in $)

Working Notes:

1) Common stock issue for land is computed as follows:-

Book Value of land sold = Sale value of land - Gain from sale = $38,100 - $10,900 = $27,200

Purchase of land = Closing Balance of Land+Book value of land sold-Opening Balance of Land

= $80,800+$27,200-$93,000 = $15,000

2) Total Issue of Common Stock = Closing Balance of Common Stock - Opening Balance of Common Stock

= $157,100 - $90,200 = $66,900

Issue of common stock for cash = Total Issue of common Stock - Issue of common stock for purchase of Land

= $66,900 - $15,000 = $51,900

3) Calculation of dividends paid:

Dividends paid = Opening Retained Earnings+Net Income-Closing Retained Earnings

= $71,600+$93,900-$101,200 = $64,300

Cash Flows from Operating Activities: Net Income 93,900 Adjustments to reconcile net income to net cash provided by perating activities: Add: Depreciation expense 8,500 Less: Gain on sale of land (10,900) Less: Interest Revenue (7,300) Add: Decrease in Accounts receivables ($44,000 - $41,900) 2,100 Less: Increase in Inventory ($121,700 - $116,900) (4,800) Add: Decrease in Prepaid Expenses ($9,300 - $8,600) 700 Less: Decrease in Accounts Payable ($70,300 - $61,800) (8,500) Less: Decrease in Accrued Liabilities ($29,100 - $17,900) (11,200) Add: Increase in Interest payable ($4,500 - $3,200) 1,300 Add: Increase in Salaries payable ($1,500 - $1,100) 400 Less: Decrease in Income taxes payable ($24,600 - $21,800) (2,800) Net Cash provided by Operating Activities (A) 61,400 Cash flows from Investing Activities: Cash Flow from sale of land 38,100 Purchase of investments ($55,400 - $18,100) (37,300) Interest Received in cash ($2,800 Interest Receivable beg. bal +$7,300 Interest Revenue for 2018 - $4,100 Interest Receivable End. bal.) 6,000 Net cash provided by investing activities (B) 6,800 Cash flows from Financing Activities: Cash paid for long term notes payable (24,700) Dividends paid (64,300) Cash received from stock issuance 51,900 Net cash used in financing activities (C) (37,100) Net Increase (decrease) in cash (D = A+B+C) 31,100 Cash Balance at the beginning of year (E) 17,600 Cash Balance at the end of year (D+E) 48,700

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