11 pts Presented below is information related to the operations of For Cod\'s Sa

Question

11 pts Presented below is information related to the operations of For Cod's Sake, Ine. 2017 s 345,000 S 180,000 Sales 2016 2017 Accounts receivable Prepaid expenses 79,000 S 784 000 85,000 147,000 Cost of goods sold 415 000 369 000 155,000 100,000 150,000 Gross profit 58,000 Depreciation expense 100,000 Other Equipment Acc. depreciation (equipment) (38,000) (16,000) Building Acc. depreciation (furniture) (58,000) (40,000) Net income 299.000) 30,000 150,000 Loss on sale of land Total assets S 61,000 S 70,000 120,000 125,00075,000 300,000400,000 127,000 119,000 Unearned revenue Bonds payable stock Retained Total liabilities and Additional information: . In 2017, For Cod's Sake, Inc., declared and paid a cash dividend. Land was sold for cash. Additional bonds payable were issued at face value. to stock. occurred related For Cod's Sake, Inc., redeemed common stock at par value. No other llh Coo Inc in th QUESTION

Explanation / Answer

  Cod's Sake,Inc.

Cash Flow Statement for the year ended 2017 (Amounts in $)

Working Note

Calculation of cash dividends

Cash dividend = Opening Balance of retained Earnings+Net Income - Closing bal of retained earnings

= $119,000+$17,000-$127,000 = $9,000

Cash Flows from Operating Activities Net Income 17,000 Adjustments to reconcile the net income to operating cash flows: Add: Loss on sale of land 13,000 Add: Depreciation expenses 40,000 Add: Decrease in Accounts Receivable ($85,000 - $79,000) 6,000 Less: Increase in Prepaid Expenses ($155,000 - $147,000) (8,000) Less: Decrease in Accounts Payable ($70,000 - $61,000) (9,000) Add: Increase in Unearned revenue ($120,000 - $0) 120,000 Net cash flow from Operating activities (A) 179,000 Cash Flows from Investing Activities Sale of Land (Book value $58,000 - Loss on sale $13,000) 45,000 Cash flow from Investing activities (B) 45,000 Cash Flows from Financing Activities Bonds Payable issued ($125,000 - $75,000) 50,000 Redemption of Common Stock ($400,000 - $300,000) (100,000) Cash Dividend paid (Working Note below) (9,000) Net Cash used in Financing Activities (C) (59,000) Net Increase/(decrease) in cash (A+B+C) 165,000 Add: Opening Balance of Cash 180,000 Closing Balance of Cash 345,000

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.