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Landscaping ​Equipment's accountants assembled the following data for the year ended June ​30, 2018. Net income....

Landscaping ​Equipment's accountants assembled the following data for the year ended June ​30, 2018.

Net income. . . . . . . . . . . . . . . . . .

$60,000

Purchase of equipment

Proceeds from issuance of

with cash. . . . . . . . . . . . . . . . . .

$35,000

common stock. . . . . . . . . .

8,000

Decrease in current liabilities. . . . . . .

2,000

Payment of dividends. . . . . . . . . .

6,400

Payment of long-term

Increase in current assets

note payable. . . . . . . . . . . . . . .

33,000

other than cash. . . . . . . . .

33,000

Proceeds from sale of land. . . . . . . . .

63,000

Purchase of treasury stock. . . . . .

6,000

Depreciation expense. . . . . . . . . . . . .

22,000

Prepare Landscaping ​Equipment's statement of cash flows for the year ended June ​30, 20182018​, using the indirect method. The cash balance for Landscaping ​Equipment, Inc., at June​30, 2017​, was $ 21,000.

Begin by completing the cash flows from operating activities.

Landscaping Equipment, Inc. Statement of Cash Flows Year Ended June 30, 2018

Cash flows from operating activities:

Adjustments to reconcile net income to

net cash provided by operating activities:

Net cash provided by (used for) operating activities

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Expert Solution

Landscaping Equipment, Inc.  
Cash Flow Statement
For this year ended June 30, 2018
Cash Flow from Operating Activities:
Net Income $    60,000.00
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense $     22,000.00
Increase in current assets $   (33,000.00)
Decrease in current liabilities $     (2,000.00)
$ (13,000.00)
A. Cash Flow from Operating Activities $    47,000.00
Cash Flow from Investing Activities:
Purchase of Equipment $   (35,000.00)
Sale of Land $     63,000.00
B. Cash flow from Investing Activities $    28,000.00
Cash Flow from Financing Activities:
Issue of common stock $        8,000.00
Dividend paid $     (6,400.00)
Purchase of treasury stock $     (6,000.00)
Repayment of long term notes payable $   (33,000.00)
C. Cash Flow from Financing Activities $ (37,400.00)
Increase (Decrease) in cash [A+B+C] $    37,600.00
Add: cash at the beginning of the year $    21,000.00
Cash at the end of the year   $    58,600.00

ekkarill92 answered 2 months ago
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