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Is this correct for statement of cashflow indirect method? Panther Marine Corporation For the Years Ended...

Is this correct for statement of cashflow indirect method?

Panther Marine Corporation

For the Years Ended June 30, 2016 and 2017
Instructions: Below are the adjusted trial balances for the years ended June 30, 2016 and 2017. The outlined cells in the changes columns MUST be completed for the statement of cash flows. Use formulas to find the debit OR credit changes in identfied cells. USE the June 30, 2017 adjusted trial balance columns to create the financial statements. DO NOT COMPLETE CELLS THAT ARE GRAYED OUT.
June 30, 2016 June 30, 2017
Adjusted Adjusted
Trial Balance Changes Trial Balance
Acct. No. Account Title Dr. Cr. Debit Credit Dr. Cr
100 Cash            562,480.00           183,490.91           378,989.09
102 Accounts Receivable            822,633.00             67,233.00           755,400.00
103 Allowance for Doubtful Accounts             25,643.00               5,826.11             19,816.89
104 Merchandise Inventory            440,980.00             94,630.00           346,350.00
105 Estimated Returns Inventory              56,450.00             12,909.00             43,541.00
106 Office Supplies                1,250.00               1,215.00               2,465.00
107 Prepaid Insurance              12,500.00               2,000.00             10,500.00
120 Investments - Trading              45,000.00             15,000.00             60,000.00
121 Investments - Available for Sale              14,650.00             11,800.00             26,450.00
122 Investments - Held to Maturity              23,850.00             16,155.01             40,005.01
123 Valuation Allowance              27,000.00               8,000.00             35,000.00
140 Land          1,743,777.65           761,777.36        2,505,555.01
145 Building          1,893,723.48             50,000.00        1,843,723.48
146 Accumulated Depreciation - Building        1,504,955.01        1,500,000.00
151 Equipment              51,000.00             10,000.00             61,000.00
152 Accumulated Depreciation - Equipment             28,000.00             30,000.00
153 Office Furniture              32,500.00             10,000.00             22,500.00
154 Accumulated Depreciation - Office Furniture               3,500.00               4,500.00
201 Accounts Payable        1,156,000.00           251,150.00           904,850.00
202 Wages Payable                        -                          -  
203 Interest Payable                        -                          -  
204 Dividends Payable                        -                          -  
205 Unearned Rent               6,000.00               2,000.00               4,000.00
206 Customer Refunds Payable             35,682.00               6,654.40             29,027.60
250 Notes Payable             12,000.00           200,000.00           212,000.00
251 Bonds Payable           200,000.00           200,000.00           400,000.00
252 Premium on Bonds Payable                        -                          -  
253 Discount on Bonds Payable                          -                          -  
252 Mortgage (Warehouse) Payable           248,000.00             50,000.00           198,000.00
300 Common Stock, $1 Par, 100,000 Authorized; 65,500 shares Issued/Outstanding             50,000.00             15,500.00             65,500.00
301 Paid In Capital - Excess of Par           356,000.00           154,544.99           510,544.99
330 Retained Earnings        2,388,379.11        2,140,014.12
331 Cash Dividends                          -             100,000.00           100,000.00
340 Treasury Stock              38,000.00             20,000.00             18,000.00
341 Unrealized (Gain) Loss Available for Sale Securities                          -                          -                          -                          -  
500 Sales        1,142,580.00        1,468,529.98
600 Cost of Goods Sold            450,199.00           482,159.00
700 Wage Expense (hourly workers)            594,515.01           399,500.00
701 Salaries Expense (Exempt Staff)              89,000.00           129,000.00
702 Marketing Expense              65,000.00             75,000.00
703 Travel and Entertainment Expense                   525.00                  925.00
704 Bad Debt Expense                5,816.88               9,816.88
705 Property Tax Expense            111,104.10                        -  
706 Office Maintenance & Repair Expense                          -                          -  
707 Legal Expenses                          -                 5,400.00
708 Insurance Expense                1,500.00               3,500.00
709 Utilities Expense              48,985.00             68,624.12
710 Office Supplies Expense                   400.00                  735.00
711 Telecommunications Expense                          -                    100.00
712 Depreciation Expense - Building                          -             100,000.00
713 Depreciation Expense - Equipment                4,000.00               2,000.00
714 Depreciation Expense - Office Furniture                   500.00               1,000.00
800 Rent Income                        -                 2,000.00
801 Unrealized Gain - Trading Securities                        -                 6,000.00
802 Realized Gain - Investment Securities                        -               51,955.01
900 Interest Expense                5,400.00             12,500.00
901 Unrealized Loss - Trading Securities              10,000.00             68,000.00
902 Realized Loss - Investment Securities                4,000.00               9,000.00
Total        7,156,739.120       7,156,739.120       7,581,738.590       7,581,738.590
         1,390,944.99        1,142,580.00        1,367,260.00        1,528,484.99
Net Income (Loss)          (248,364.99)
Panther Marine
Instructions: Using the "changes columns" from the adjusted trial balance worksheet AND the below additional information to create a statement of cash flows using the INDIRECT METHOD. Round all amounts to the nearest cent. The rest of the formatting is up to the student. Note that grades are based on organization and clarity of this financial statement. Other required items and additional information are:
a. Only use accounts that have changes or cash flows
b. Proper report title
c. Net change in cash, beginning cash balance, ending cash balance and cash per balance sheet MUST be included
d. All cash flow activities must be identified, organized, totaled, and clearly labeled
e. Assume all investment changes utilized only cash
f. Valuation allowance change is an investing activity
g. Assume all financing changes utilized only cash
h. Panther Marine considers bonds and notes as financing activities
Panther Marine
Statement of Cash Flow
For the Year Ended June 30, 2017
Cash flows from Operating Activitires
Net Income 161224.99
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation                         103,000.00
Unrealized Gain - Trading Securities                            (6,000.00)
Realized Gain - Investment Securities                           51,955.00
Interest Expense                           12,500.00
Unrealized Loss - Trading Securities                           68,000.00
Realized Loss - Investment Securities                             9,000.00
Cash generated from operations                         238,455.00
Cash flow from Current Operating Assets and Liabilies
Decrease Accounts Receivable                           67,233.00
Decrease Allowance for Doubtful Accounts                            (5,826.11)
Decrease Merchandise Inventory                           94,630.00
Decrease Estimated Returns Inventory                           12,909.00
Increase Prepaid Expenses                            (3,215.00)
Decrease Accounts Payable                       (251,150.00)
Decrease Unearned Rent                             2,000.00
Decrease Customer Refunds Payable                             6,654.00
Cash from current operating assets and liabiliites                          (76,765.11)
Net cash flow from operating activities                         322,914.88
Cash flow from Investing Activities
Investments Purchased                          (42,955.00)
Land                       (247,232.00)
Equipment                          (10,000.00)
Net cash flow from investing activities                       (300,187.00)
Financing Activities
Bonds Payable                         200,000.00
Mortgage (Warehouse) Payable                          (50,000.00)
Common Stocks                           15,500.00
Paid In Capital - Excess of Par                         154,544.99
Net cash flow from financing activites 320044.99
Increase (decrease) in cash                         342,772.87
Cash at the beging of the year 562480
Cash at the end of the year 378989.09
Noncash investing and financing activites

          161,224.99

Solutions

Expert Solution

Most of work done by you was correct, but there were some mistake, which I referred in attached image. I hope you will be able to understand concept with that.


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