Exercise 12-5 Your answer is partially correct. Try again. The following informa

Question

Exercise 12-5 Your answer is partially correct. Try again. The following information is available for Sweet Acacia Industries for the year ended December 31, 2017. Beginning cash balance Accounts payable decrease Depreciation expense Accounts receivable increase Inventory increase Net income Cash received for sale of land at book value Cash dividends paid Income taxes payable increase Cash used to purchase building Cash used to purchase treasury stock Cash received from issuing bonds $ 48,510 3,989 174,636 8,840 11,858 306,260 37,730 12,936 5,067 311,542 28,028 215,600

Explanation / Answer

Solution :-

Statement of Cash Flows :-

Particulars Amount ($) Amount ($) Cash flows from operating activities :- Net Income 306260 Net cash from operating activities :- Add : Depreciation Exp. 174636 Less : Increase in Accounts Receivable (8840) Less : Increase in Inventory (11858) Less : Decrease in Accounts Payable (3989) Add : Increase in Income tax Payable 5067 155016 Net Cash Flows from operating activities 461276 Cash Flows from Investing Activities :- Add : Sale of Land 37730 Less : Purchase of Building (311542) Net Cash Flows from Investing Activities (273812) Cash Flows from Financing Activities:- Less : Dividend Paid (12936) Less : Treasury Stock Purchase (28028) Add : Issue of bonds 215600 Net Cash Flows from Financing activities 174636 Net Cash Flow 362100 Add : Beginning Cash Balance 48510 Ending Cash Balance 410610

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