Question

Below are balance sheet and income statement data for Howard Bannister Company.  Note: For the balance sheet data, the end-of-year information is in the left column.

Balance Sheet Data

  20X2   20X1

Accounts Payable................................................................................................ 95............................................................. 165

Accumulated Depreciation................................................................................ 520 ...........................................................339

Cash      ................................................................................................................ 130 ..........................................................100

Common Stock ..............................................................................................    1,000......................................................... 700

DIVIDENDS PAYABLE......................................................................................... 40............................................................ 25

Equipment......................................................................................................... 2,395....................................................... 2,700

Income Tax Payable ..........................................................................................100............................................................ 135

Inventory.......................................................................................................... 1,120........................................................... 890

Mortgage Payable.............................................................................................. 900......................................................... 1,500

Prepaid General Expenses............................................................................... 300............................................................. 350

Retained Earnings (ending balance, after closing)...................................... 1,240...................................................... 1,098

Unearned Sales Revenue.................................................................................. 50............................................................ 78

Income Statement Data (for 20X2)

Sales     ................................................................................................................................... 10,000

Cost of Goods Sold............................................. 6,000

General Expenses............................................... 2,000

Depreciation Expense........................................... 330

Loss on Sale of PPE................................................ 100

Income Tax Expense............................................. 700

       Total Expenses                                                                                                                   9,130

Net Income............................................................................................................................... 870

Additional Information:

a.    Equipment with a (net) book value of $300 was sold during 20X2.

b.    All accounts payable relate to inventory purchases.

c.    Equipment costing $60 was purchased with a mortgage during 20X2. This fact is already reflected in the balance sheet numbers reported above. All other purchases of Equipment in 20X2 were cash transactions.

Part 1:  Compute the amount of Cash Paid for Inventory Purchases in 20X2.

Part 2:   Compute the total CASH FROM OPERATING ACTIVITIES in 20X2.

Part 3:  Compute the total CASH FROM INVESTING ACTIVITIES in 20X2.

Part 4:   Compute the CASH PAID FOR DIVIDENDS in 20X2.

For each question, write the dollar amount of your answer. (Do not write the dollar sign.)

Answer 1

PART 1

PART 2

WORKING NOTE:

PART - 3

WORKING NOTES

PART 4

PLEASE COMMENT IT IF ANY DOUBT ARISES