Problem 23-6 Comparative balance sheet accounts of Flint Inc. are presented belo

Question

Problem 23-6 Comparative balance sheet accounts of Flint Inc. are presented below FLINT INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016 December 31 2017 2016 Debit Accounts Cash Accounts Receivable Inventory Equity investments Machinery Buildings Land $33,900 60,300 24,100 38,900 18,700 55,700 7,600 $270,900 $239,200 $42,400 70,600 30,100 22,000 30,300 67,900 7,600 Credit Accounts Allowance for Doubtful Accounts Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings $1,500 2,200 8,900 24,500 2,600 30,800 125,000 43,700 $270,900 $239,200 $2,300 5,600 13,500 34,700 3,500 21,000 150,000 40,300 Additional data (ignoring taxes)

Explanation / Answer

(a) Net cash flow from operating activities: $44450

(b)

Note: Stock dividend is a non-cash activity and hence not included in the cash flow statement.

Cash receipts from customers: Sales Revenue 540400 Less: Bad debts expense -5042 Less: Increase in Accounts Receivable -9500 [($70600 - $2300) - ($60300 - $1500)] 525858 Cash paid for merchandise: Cost of goods sold 381000 Add: Increase in Inventory ($30100 - $24100 ) 6000 Less: Increase in Accounts Payable ($34700 - $24500) -10200 -376800 Cash paid for operating expenses: Cash operating expenses ($119300 - $8750 - $5042) 105508 Less: Increase in Accrued liabilities ($3500 - $2600) -900 -104608 Net cash flow from operating activities $ 44450

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