under the indireet lllelnou.T e company The following information relates to Dun
ID: 2610462 • Letter: U
Question
under the indireet lllelnou.T e company The following information relates to Dunwoody Nursery&Garden; Center, Inc. The c erther leases a building adjacent to its land. DUNWOODY NURSERY &GARDEN; CENTER, INC. Comparative Balance Sheets December 31, 2013 and 2012 2013 2012 Assets Cash Accounts receivable, net Merchandise inventory Equipment Accumulated depreciation-equipment Land Total assets $44,500 52,000 59,000 60,000 175,000 120,000 412,500 315,000 (120,000) (105,000) 75,000 15,000 -$646,000 457,000- Liabilities and Stockholders' Equity Accounts payable Accrued liabilities payable Capital stock-common-$10 par Paid-in capital in excess of par Retained earnings Total liabilities and stockholders' equity $43,750 $40,750 2,250 3,750 375,000 300,000 150,000 75,000 75,00037,500 $646,000 $457,000Explanation / Answer
Cash flow statement
Cash flow from operating activities
net income 97500
add: Depreciation 30000
less: gain on sales (3750)
123750
decrease in accounts receivable 1000
increase in inventory (55000)
Increase in accounts payable 3000
decrease in accrued liabilities payable (1500)
Net Cash provided by operating activities 71250
Cash flow from financing activities
cash dividend (60000)
proceed from common stock 150000
Net Cash provided by financing activities 90000
Cash flow from investing activities
purchase of land (60000)
sale of equipment 3750
purchase of equipment (112500)
Net Cash used by investing activities (168750)
Net decrease in cash (7500)
add: cash at beginning 52000
Cash at end 44500
Note:- Equipment
To Balance b/d 315000 By Assets disposal 15000 To cash 112500 By Balance c/d 412500 Accumulated depreciation To Assets disposal 15000 By Balance b/d 105000 To Balance c/d 12000 By Depreciation 30000 Assets disposal To equipment 15000 By cash 3750 To gain on sales 3750 By Accumulated depreciation 15000Related Questions
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