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cui2 . SLO# 2 his Q 10 pts The 2016 comparative balance sheet and income stateme

ID: 2591545 • Letter: C

Question

cui2 . SLO# 2 his Q 10 pts The 2016 comparative balance sheet and income statement of M. Greyson Pet Supply, Inc, are (Click the icon to view the comparative balance sheet) Greyson Pet Supply, inc, (Click the icon to wew the income statement) M. Greyson Pet Supply, Inc, had no noncash investing and fnancing transacions during 2016. ing the year, M. Greyson Pet Supply, Inc, made no sales of land or equipment, no issuance of notes payable, no retirement of stock, and no treasury stock tr pare the 2016 statement of cash flows, formatting operating actvtos by the indirect method. what you learned in this problem help you evaluate an investment in M. Greyson Pet Supply, Inc.? Requirement 1. Prepare the 2016 staterment of cash fnows, formatting operating actvtes by the Complete the stalement one sechon at a time, beginning with the cash flows from operating actrvibes. (Use parentheses or a minus sign for numbers to be subtractedDable M. Greyson Pet Supply, inc. Statement of Cash Flows Year Ended December 31, 2016 Dalta Table M. Greyson Pet Supply, Inc Comparative Balance Sheet December 31, 2016 and 2015 Cash fiows from operating activities: Net income Adjustments to reconcile net income to net cash M. Greyson Pet Supply, Inc. Income Statement Year Ended December 31, 2016 provided by operating acivibes Increase 2016 2015 (Decr Revenues Cash and cash equivalents Accounts recelvable Inventory 6.400 25 Sales revenue S 216 26, 89 1,400) 1,70 interest revenue 224.900 ked Assets Tosal revenues Net cash provided by (used for) aperaing aciviies Cash flows from investing activities: Expenses 19 Cost of goods sold Salaries expense Depreciation expense other operabing expenses Interest expense Income tax expense Equipment, net 53 5 70 27 50 3.6 otal Assets S 266.000lS 241 S 24 Current Luabiltes Nel cash proided by (used for investing activities Cash flows from financing activities: 10.9 Accounts payaple ccrued labeties 30.800S 36.100 14.300 2,000 73000 99.000 (26,000 28.1 29.10 ong-Term Liabilities Total expenses Notes payable Ne Income rs Equity Net cash proided by f(usea for) financing acthities Common stock Net increase (decrease) in cash: 64 Pint Done Ratained earnings 43.700 Cash atance. December 31. 2015 Cash valance Decemper 31, 2015 and Stociholders Equity 5 266 00os 241 50OS 24 50 Requirement 2. How wall what you learned in this proolem heip you evaluate an in estment in M Grejson Pet Supply, Ind Print Done Choose from any lst or enter any number in the input fields and then continue to the nest question

Explanation / Answer

Statement of cash flows

Year Ended December 31, 2016

Particulars

Amount

Cash flow from operating Activities

Net Income

70600

Adjustments to reconcile net income to net cash

provided by operating activities

Depreciation expense

4700

Interest expense

11300

Increase in inventory

-1700

Decrease in Account receivables

1400

decrease in account payable

-4300

Increase in accrued liabilities

2000

Cash flow from operating activities

84000

Cash flow from Investing Activities

Purchase of land

-19400

Purchase of Equipment

-8300

Cash flow from Investing Activities

-27700

Cash flow from Financing Activities

Issue of stock

23900

Interest expense

-11300

Payment of notes

-26000

Payment of Dividends

-41700

Cash flow from Financing Activities

-55100

Net increase in Cash

1200

Opening balance of cash

5200

Closing balance of cash

6400

2) The company is generating good amount of cashflows from operating activities and is regular in paying dividends to shareholders.

Statement of cash flows

Year Ended December 31, 2016

Particulars

Amount

Cash flow from operating Activities

Net Income

70600

Adjustments to reconcile net income to net cash

provided by operating activities

Depreciation expense

4700

Interest expense

11300

Increase in inventory

-1700

Decrease in Account receivables

1400

decrease in account payable

-4300

Increase in accrued liabilities

2000

Cash flow from operating activities

84000

Cash flow from Investing Activities

Purchase of land

-19400

Purchase of Equipment

-8300

Cash flow from Investing Activities

-27700

Cash flow from Financing Activities

Issue of stock

23900

Interest expense

-11300

Payment of notes

-26000

Payment of Dividends

-41700

Cash flow from Financing Activities

-55100

Net increase in Cash

1200

Opening balance of cash

5200

Closing balance of cash

6400