Exercise 23-13 Bonita Inc., a greeting card company, had the following statement
ID: 2542215 • Letter: E
Question
Exercise 23-13
Bonita Inc., a greeting card company, had the following statements prepared as of December 31, 2017
Additional information:
1.
Dividends in the amount of $6,000 were declared and paid during 2017.
2.
Depreciation expense and amortization expense are included in operating expenses.
3.
No unrealized gains or losses have occurred on the investments during the year.
4.
Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017.
Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
1.
Dividends in the amount of $6,000 were declared and paid during 2017.
2.
Depreciation expense and amortization expense are included in operating expenses.
3.
No unrealized gains or losses have occurred on the investments during the year.
4.
Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017.
BONITA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 62,600 50,600 Short-term debt investments (available-for-sale) 35,200 18,100 Inventory 39,600 59,700 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation-equipment (34,900) (24,800 ) Copyrights 45,900 49,800 Total assets $312,200 $293,300 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $45,900 4,000 8,100 8,000 60,500 100,000 30,000 55,700 $312,200 $39,900 6,000 3,900 10,000 68,500 100,000 30,000 35,000 $293,300Explanation / Answer
Cash Flow Statement
Supporting Working
Cash Flow from Operating Activities Cash Received from Customer 325675 Cash Payment to Supplier 149400 Cash Payment for Operating Expences 84300 Cash Payment of Interest 11300 Cash Payment of Income Tax 6675 251675 Net Cash Provided by Operating Activities 74000 Cash Flow from Investing Activities Sales of Equiptment 2000 Purchase of Equiptment -43900 Purchase of Inveshments -17100 Cash Flow from Investing Activities -59000 Cash Flow from Financing Activities Principle payment on Short Term loan -2000 Borrowing on Short Term Loan -8000 Divident Payment -6000 Cash Flow from Financing Activities -16000 Net Increase In Cash -1000 Cash at Beginning of Period 7000 Cash at End of Period 6000Related Questions
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