Question

Exercise 23-12 Condensed financial data of Bramble Company for 2017 and 2016 are presented below. BRAMBLE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,810 $1,120 Receivables 1,790 1,330 Inventory 1,570 1,940 Plant assets 1,870 1,740 Accumulated depreciation (1,230 ) (1,150 ) Long-term investments (held-to-maturity) 1,300 1,440 $7,110 $6,420 Accounts payable $1,220 $910 Accrued liabilities 200 260 Bonds payable 1,370 1,550 Common stock 1,860 1,740 Retained earnings 2,460 1,960 $7,110 $6,420 BRAMBLE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,810 Cost of goods sold 4,680 Gross margin 2,130 Selling and administrative expenses 920 Income from operations 1,210 Other revenues and gains Gain on sale of investments 80 Income before tax 1,290 Income tax expense 530 Net income 760 Cash dividends 260 Income retained in business $500 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. Prepare a statement of cash flows using the direct method.

Answer 1

	BRAMBLE COMPANY
	Cash Flow Statement(Direct Method)
	For the Period Ended 31st December
S.NO	Particulars	Amount($)	Amount($)
	Cash Flow From Operating Activities
	Cash Received from Customers	$6350
	Less:Cash paid to supplies	($4000)
	Cash Paid for operating Expenses	($900)
	Cash Paid for Income Taxes	($530)
	Net Cash Provided by Operating Activities	$920	$920
	Cash Flow From Investing Activies
	Proceeds from Sale of Investments	$220
	Plan Assets Purchased	($60)
	Net Cash Provided by Investing Activities	$160	$160
	Cash Flow from Financing activites
	Bonds Payable Discharged	($180)
	Common Stock Issued for Cash	$50
	Cash Dividends Paid	($260)
	Net Cash Used In Financing Activites	($390)	($390)
	Net Increase(Decrease) in cash Balance during the Year		$690
	Add:cash at the Beginning		$1120
	Cash At the End		1810
	Note:1
	Sales for the Year	$6810
	Less:Increase in Accounts Receivable	($460)
	Cash Received from Customers	$6350
	Note:2
	Cost of Goods Sold	$4680
	Less:Increase in Accounts Payable	-310
	Less:Decrease In Inventory Balance	-370
	Cash paid to Suppliers	4000
	Note:3
	Selling and Administrative Expenses	920
	Less;Depreciation Expenses charged	-80
	Add:Decrease in accrued Liabilities	60
	Cash Paid For operating Expenses	900
	note:4
	Decrease In long term Investments	140
	Add:Gain On sale of Investments	80
	Proceeds from sale of Investments	220
	Note:5
	Increase in Plant ASSets	-130
	Add: Common Stock Exchanged	70
	Plant Purchased by cash	-60
	Note:6
	Increase In Common Stock	120
	Less:Common Stock Exchanged for Plant Assets	-70
	Common Stock Issued at cash	50