1.The comparative balance sheet for the Bale company for year 1 and year 2 are p

Question

1.The comparative balance sheet for the Bale company for year 1 and year 2 are presented below. The dividend declared and paid in year 2 is $13,500. Prepare a statement of cash flows. Treat the changes in noncurrent assets and acquisition/ disposal or PP&E

Year 1

cash 36000

noncurrent assets 132000

noncurrent liabilities 99000

contributed capital 49500

retained earnings 19500

year 2

Cash 48000

noncurrent assets 183000

noncurrent liabilities 75000

contributed capital 90000

retained earnings 66000

Explanation / Answer

Particulars Amount ($) Amount ($) Operating Activities Increase in Retained earnings (66,000-19,500)               46,500 Add: Dividend declared & paid               13,500 Cash provided in operating Activities (A)             60,000 Investing Activities Acquisition of PPE (183,000-132,000) (51,000) Cash used in investing Activities (B) (51,000) Financing Activities Issue (Sale) of Common Stock (90,000-49,500) 40,500 Repayament of debts (99,000-75,000) (24,000) Dividend Declared & Paid (13,500) Cash provided in operating Activities (C)               3,000 Net cash increase during the year 2 (A+B+C)             12,000 Cash at beginning of the Year 2             36,000 Cash at Ending of the Year 2             48,000

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