Question

Instruction:

Only prepare the statement of

Cash flows for the year ending 12/31/2018

The trial balances for the beginning of the year and End of the year, as well as

Additional information, are provided below.

The name of the company is: Rockford Plumbing Supply, Inc.

	Final (Ending) Trial Balance - 12/31/2018
	Account	Name	Debit	Credit
	101	Cash	431,794
	105	Petty Cash	150
	112	Accounts Receivable	464,550
	113	Allowance for Doubtful Accounts		40,178
	115	Notes Receivable	0
	120	Inventory	569,671
	126	Supplies	3,680
	130	Prepaid Insurance	11,020
	131	Prepaid Rent	25,410
	135	Other Assets	145,000
	140	Land	43,000
	145	Buildings	306,000
	146	Accum. Depr. Buildings		78,040
	151	Equipment	63,900
	152	Accum. Depr. Equipment		21,200
	163	Trucks	60,400
	164	Accum. Depr. Trucks		41,540
	200	Bank Line of Credit		15,000
	201	Accounts Payable		357,600
	214	FICA Taxes Payable		1,530
	215	Income Taxes Payable		125,000
	216	Federal Withholding Taxes Payable		1,967
	218	State Withholding Taxes Payable		2,901
	224	FUTA Taxes Payable		400
	226	SUTA Taxes Payable		2,600
	230	Interest Payable		23,261
	268	Dividends Payable		0
	270	Notes Payable		417,606
	273	Bonds Payable		275,000
	311	Discount on Bonds Payable	6,400
	317	Common Stock		189,000
	320	Paid-in Capital in Excess of Stated Value		256,400
	330	Retained Earnings		362,748
	332	Treasury Stock
	401	Dividends	50,000
	412	Sales Revenue		5,433,396
	414	Sales Returns and Allowances	14,060
	505	Sales Discounts	115,459
	610	Cost of Goods Sold	3,995,710
	612	Advertising Expense	7,178
	631	Bad Debt Expense	1,120
	644	Supplies Expense	1,540
	711	Freight-out	18,542
	726	Depreciation Expense	23,000
	730	Salaries and Wages Expense	943,752
	732	Payroll Tax Expense	83,681
	820	Utilities Expense	16,669
	905	Interest Revenue		3,150
	921	Interest Expense	47,831
	999	Loss on Disposal of Plant Assets	2,000
		Income Tax Expense	197,000
	Total
			7,648,517	7,648,517
	Additional information: A truck was sold for cash proceed of $ 8,000
	The increase in equipment was due to purchase of equipment.
	The decrease in debt is due to re-payments.
	The portion of the notes and Bonds payable that will become due next year is $ 10,000.

Beginning Trial Balance - post closing 12/31/2017
Account		Name	Debit	Credit
101		Cash	279,930
105		Petty Cash	150
112		Accounts Receivable	317,420
113		Allowance for Doubtful Accounts		4,580
115		Notes Receivable	-
120		Inventory	531,960
126		Supplies	2,320
130		Prepaid Insurance	11,020
131		Prepaid Rent	25,410
135		Other Assets	145,000
140		Land	43,000
145		Buildings	306,000
146		Accum. Depr. Buildings		73,040
151		Equipment	32,800
152		Accum. Depr. Equipment		13,200
163		Trucks	78,400
164		Accum. Depr. Trucks		39,540
200		Bank Line of Credit		-
201		Accounts Payable		126,850
212		FICA Taxes Payable		1,787
214		Income taxes payable		-
215		Federal Withholding Taxes Payable		9,573
216		State Withholding Taxes Payable		2,486
218		FUTA Taxes Payable		400
224		SUTA Taxes Payable		2,600
226		Interest Payable		-
230		Dividends Payable		-
250		Notes Payable		422,606
268		Bonds Payable		275,000
270		Discount on Bonds Payable	6,400
273		Common Stock		189,000
311		Paid-in Capital in Excess of Stated Value		256,400
317		Retained Earnings		362,748
320		Treasury Stock	-
		Total	1,779,810	1,779,810

Answer 1

Rockford Plumbing Supply, Inc.
Statement of Cash Flows (Indirect Method)
For the Year ended Dec 31, 2018
Cash Flow from opearating activities:
Net Income (Loss)		(30,996)
Add/(Less) non cash effects on operating activities
Depreciation expense	23,000
Loss on Disposal of Plant Assets	2000
Increase in Accounts Receivables	(111,532)
Increase in Inventory	(37,711)
Increase in Supplies	(1,360)
Increase in Accounts Payables	230,750
Decrease in FICA Tax Payable	(257)
Increase in Income Tax Payable	125,000
Decrease in Federal Withholding Taxes Payable	(7,606)
Incerase in State Withholding Taxes Payable	415
Increase in Interest Payable	23,261	245,960
Net Cash provided by operating activities		214,964
Cash flow from Investing Activities
Purchase of Equipment	(31,100)
Sale of Truck	8,000
Net Cash used by Investing activities		(23,100)
Cash Flow from Financing Activities
Proceeds from of Bank Line credits	15,000
Payment on Notes Payable	(5,000)
Dividend Paid	(50,000)
Net Cash used by Financing activities		(40,000)
Net Increase / (Decrease) in Cash		151,864
Cash & Cash Equivalents at the beginning - Dec 31, 2017		280,080
Cash & Cash Equivalents at the beginning - Dec 31, 2018		431,944