Explain specifically, please. d. All things considered, based on the information

Question

Explain specifically, please. d. All things considered, based on the information in its statele cash position appear to be improving or deteriorating? ATC 12-3 Group Assignment Preparing a statement of cash flows The following financial stat ements and information are available for Blythe Industries Inc. Balance Sheets As of December 31 2016 2017 $120,600 85,000 171,800 220,000 490,000 (240,000) 120,000 $967400 Assets S 160,200 103,200 186,400 284,000 650,000 (310,000) 80,000 Cash Accounts receivable Inventory Marketable securities (available for sale) Accumulated depreciation Land S1.153,800 Total assets Liabilities and equity Liabilities Accounts payable (inventory) Notes Bonds payable S 36,400 230,000 200,000 466,400 66,200 250,000 100,000 416,200 Total liabilities Stockholders' equity Common stock, no par Preferred stock, $50 par Paid-in capital in excess of par-Preferred stock Total paid-in capital Retained earnings Less: Treasury stock 200,000 100,000 26,800 326,800 264,400 240,000 110,000 34.400 384,400 333,000 0,000) 687,400 (40,000) Total stockholders' equity Total liabilities and stockholders equity 551.200 $967,400 1.153 800 Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses $1,050,000 (766,500) 283,500 Supplies expense Salaries expense Depreciation expense $20,400 92,000 90,000 Total operating expenses Operating income Nonoperating items Interest expense Gain from the sale of marketable securities Gain from the sale of land and equipment (16,000) 30,000 12,000 S 107,100

Explanation / Answer

The Group Task Involves the following:

a. The class has to be divided into three groups , say Group A , Group B and Group C.

b. Each group prepares a part of the cash flow statement., like

Group A prepares the part " Cash flow from Operations"

Group B prepares the part " Cash flow from Investing Activities"

Group C prepares the part " Cash flow from Financing Activities"

c. Each group puts its section of the cash flow statement on the board thereby putting up the total cash flow statement.

BLYTHE INDUSTRIES INC. Cash flow statement for the year ended December 31 Net income 107100 Adjustments Depreciation expense 90000 Gain on sale of marketable securities -30000 Gain on sale of land and equipment -12000 Interest expense 16000 Accounts receivable -18200 Inventory -14600 Accounts payable -29800 Cash flow from operations 108500 Cash flow from investing activities Sales of marketable secutiries 70000 Sale of land 44000 Sales of equipment 18000 Purchase of new equipment -190000 Purchase of marketable secutiries -104000 Cash flow from investing activities -162000 Cash flow from financing activities Payment of principal on long term note -20000 Retirement of bonds payable -100000 Issue of new bonds payable 200000 Issue of common stock 40000 Issue of preferred stock 17600 Sale of treasury stock 10000 Payment of divideinds -38500 Interest paid -16000 Cash flow from financing activities 93100 Net cash flow 39600 Beginning cash balance 120600 Ending cash balance 160200 a. Cost per share of the treasury stock = $100 ($10000 / 100)         b. Issue price of the preferred stock = $17,600 / 200 = $88    Number of prefered shares issued = $10000 / $50 = 200    increase in paid in capital of par - preferred stock         = 34,400 - 26,800 = $7,600.    Total cash received from issue of preferred stock            =10,000 + 7,600 = $17,600 c. Book value of the equipment sold = $10,000 ($30,000 - $20,000)

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