A comparative balance sheet for Kingbird Corporation is presented below. Decembe

Question

A comparative balance sheet for Kingbird Corporation is presented below.

December 31

2017

2016

Additional information:

Bonds payable amounting to $50,000 were retired through issuance of common stock.   

Prepare a statement of cash flows for 2017 for Kingbird Corporation

December 31

Assets

2017

2016

Cash $ 72,880 $ 22,000 Accounts receivable 84,590 68,710 Inventory 182,590 191,710 Land 73,590 112,710 Equipment 262,590 202,710 Accumulated Depreciation-Equipment (71,590 ) (44,710 )    Total $604,650 $553,130 Liabilities and Stockholders' Equity Accounts payable $ 36,590 $ 49,710 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings 204,060 139,420    Total $604,650 $553,130

Explanation / Answer

Statement of cash flow :

Cash flow from operating activities Net income 130180 Adjustment to reconcle net income Depreciation 26880 Increase account receivable (15880) Decrease inventory 9120 Decrease account payable (13120) Net cash flow from operating activities 137180 Cash flow from investing activities Sale of land 39120 Purchase equipment (59880) Net cash flow from investing activities (20760) Cash flow from financing activities Dividend paid (65540) Net cash flow from financing activities (65540) Net cash flow 50880 Beginning cash 22000 ENding cash 72880

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