Question

Some recent financial statements for Smolira Golf Corp. follow.

  

SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets
Assets									Liabilities and Owners’ Equity
	2017				2018					2017				2018
Current assets									Current liabilities
Cash	$	35,485			$	38,848			Accounts payable	$	38,612			$	43,132
Accounts receivable		18,351				28,756			Notes payable		20,108				17,025
Inventory		3,940				43,072			Other		20,854				25,514
Total	$	57,776			$	110,676			Total	$	79,574			$	85,671
									Long-term debt	$	120,500			$	184,214
									Owners’ equity
									Common stock and paid-in surplus	$	56,100			$	56,100
									Accumulated retained earnings		267,072				305,974
Fixed assets
Net plant and equipment	$	465,470			$	521,283			Total	$	323,172			$	362,074
Total assets	$	523,246			$	631,959			Total liabilities and owners’ equity	$	523,246			$	631,959

SMOLIRA GOLF CORP. 2018 Income Statement
Sales					$	511,954
Cost of goods sold						363,178
Depreciation						45,838
Earnings before interest and taxes					$	102,938
Interest paid						20,783
Taxable income					$	82,155
Taxes (21%)						17,253
Net income					$	64,902
Dividends	$	26,000
Retained earnings		38,902

Prepare the 2018 statement of cash flows for Smolira Golf Corp. (Negative answers should be indicated by a minus sign.)

SMOLIRA GOLF CORP.
STATEMENT OF CASH FLOWS
FOR 2018
Cash, beginning of the year
Operating Activities
Net income	45838
Add: Depreciation
Add: Increase in accounts payable
Add: Increase in other current liabilities
Less: Increase in accounts receivable
Less: Increase in inventory
Net cash from operating activities
Investment activities
Fixed asset acquisition
Net cash from investment activities
Financing activities
Dividend paid
Decrease in notes payable
Increase in long-term debt
Net cash from financing activities
Net increase in cash
Cash, end of year

Answer 1