Ex 10 (6.000) .oo $3.000 AssOES 201s Cash 17.000 12,000 60,000 04.000oo0 current

Question

Ex 10 (6.000) .oo $3.000 AssOES 201s Cash 17.000 12,000 60,000 04.000oo0 current assets 167.00o 2 0.000 60,000) (48.o00) $357.000 $288,000 250,000 Total assets - Liabilities Accounts payable.... 35.o0040,000 Interest payable Income taxes payable .- Total current Habilities . 3.0002.00 4,000 22,000 60.000o 56,000 64.000 Long-term notes payable. Tocal iabilities-...*15o,000 120,000 Equity Common stock, $5 par Retained earnings Total equity Total liabilities and equity. 80,00O 112.000 ·.. $357.000 207.000168,000 $288,000 Additional information on Genesis Inc.'s 2015 transactions: a. The accounts payable balances result from inventory purchases b. Purchased $60,000 in plant assets by issuing $60,000 of notes payable. c. Sold plant assets with a book value of $8,000 (original cost of $20,000 and accumulated depreciation of $12,000) for $2,000 cash, yielding a $6,000 loss. d. Received $15,000 cash from issuing 3,000 shares of common stock. e.Paid $18,000 cash to retire notes with a $34,000 book value, yielding a $16,000 gain. f. Declared and paid cash dividends of $14,000

Explanation / Answer

Statement of cash flow :

Cash flow from operating activities Net income 38000 Add Depreciation expenses 24000 Loss on sale of plant assets 6000 Decrease in current assets other than cash Increase in current liability Increase income tax payable 10000 Less: Gain on retirement of notes (16000) Increase current assets Other than cash Increase account receivable (20000) Increase inventory (14000) Increase prepaid expenses (2000) Decrease current liability Decrease account payable (5000) Decrease interest payable (1000) Net cash flow from operating activities 20000 Cash flow from investing activities Sale of plant assets 2000 Net cash flow from investing activities 2000 Cash flow from financing activities Issue common stock 15000 Dividend paid (14000) Retirement of bonds (18000) Net Cash flow from financing activities (17000) Net cash flow 5000 Beginning cash 12000 Ending cash 17000

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