Labels and Amount Descriptions Cash paid for dividends Cash paid for merchandise

Question

Labels and Amount Descriptions
Cash paid for dividends  
Cash paid for merchandise  
Cash paid for purchase of equipment  
Cash paid for purchase of land  
Cash received from customers  
Cash received from sale of common stock  
Cash received from sale of investments  
December 31, 2016  
Decrease in accounts payable  
Decrease in accounts receivable  
Decrease in accrued expenses payable  
Decrease in inventories  
Decrease in cash  
Depreciation  
For the Year Ended December 31, 2016  
Gain on sale of investments  
Increase in accounts payable  
Increase in accounts receivable  
Increase in accrued expenses payable  
Increase in cash  
Increase in inventories  
Loss on sale of investments  
Net cash flow from operating activities  
Net cash flow used for operating activities  
Net cash flow from investing activities  
Net cash flow used for investing activities  
Net cash flow from financing activities  
Net cash flow used for financing activities  
Net income

Dec. 31,2016 Dec. 31,2015 Assets 625,760.00 $585,920.00 208960.00 617,120.00 240,000.00 0.00 553,120.00 (166,400.00) 148,000.00) 2,362,080.00 $2,057,120.00 3Cash 4Accounts receivable (net) 5 Inventories 227,840.00 641,760.00 0.00 28,000.00 705,120.00 7 Land 8Equipment 9 Accumulated depreciation-equipment 10 Total assets Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) 13 Accrued expenses payable (operating expenses) 14 Dividends payable 15 Common stock, $4 par 16 Paid-in capital: Excess of issue price over par-common stock 17 Retained earnings 18 Total liabilities and stockholders' equity 424,480.00 $404,960.00 52,640.00 19,200.00 100,000.00 280,000.00 303,860.00 1200,320.00 2,362,080.00 $2,057,120.00 42,240.00 24,000.00 150,000.00 417,500.00

Explanation / Answer

workings:

Statement of cash flow Particulars Amount Amount Net income              1,99,540 Adjustments to reconcile net income: gain on sale of investment               (40,000) Depreciation                  18,400 Working capital changes: Increase in accounts receivables               (18,880) Increase in inventories               (24,640) Increase in accounts payables                  19,520 Decrease in accrued expenses               (10,400) Net cash from operating activities              1,43,540           1,43,540 Cash flow from investing activities: Cash received from sale of common investments              2,80,000 Cash paid for purchase of equipment            (1,52,000) Cash paid for purchase of land            (3,28,000) Net cash used in investing activities            (2,00,000)         (2,00,000) Cash flow from financing activities: Cash paid for dividends               (91,200) Cash received from sale of common stock              1,87,500 Net cash from financing activities                  96,300               96,300 Increase in cash               39,840 Add: Opening cash balance           5,85,920 Closing cash balance           6,25,760

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