Hunter Company is developing its annual financial statements at December 31, 201

Question

Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance shegts and income statement are summarized: 2015 2014 Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment (35,000) (27,500) $ 46,550 22,500 25,500 105,500 15,500 24,000 31,000 97,000 $165,050 140,000 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $22,000 19,500 1,000 43,000 55,000 21,500 850 33,000 77,500 31,700 1, $165,050 $140,000 Income Statement for 2015 Sales Revenue Cost of Goods Sold Other Expenses $115,000 68,500 33,000 Net Income $ 13,500 h2.png ia-nn-patents-social.png images (1)-jpeg images.jpeg

Explanation / Answer

Hunter Company

Statement of Cash Flows

For the year ended December 31, 2015

$ $ Cash Flows from Operating Activities Net Income 13,500 Adjustments to reconcile net income to net cash provided by operating activities Depreciation Expense 7,500 Decrease in Accounts Receivable 1,500 Decrease in Inventory 5,500 Increase in Accounts Payable 2,500 Decrease in Salaries and Wages Payable (150) 16,850 Net Cash Provided by Operating Activities 30,350 Cash Flows from Investing Activities Addition to Equipment (8,500) Net Cash used in Investing Activities (8,500) Cash Flows from Financing Activities Issuance of Common Stock 22,500 Retirement of Long Term Note Payable (10,000) Dividends Paid (3,300) Net Cash Provided by Financing Activities 9,200 Net Increase in Cash and Cash Equivalents 31,050 Beginning Cash and Cash Equivalents 15,500 Ending Cash and Cash Equivalents 46,550

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