Question

In: Accounting

The comparative balance sheet for Astro Company for the current year and the preceding year are...

The comparative balance sheet for Astro Company for the current year and the preceding year are presented below:

Current Preceding

Year Year

Assets

Cash---------------------------------------- $ 52,100 $ 42,500

Accounts receivable (net)------------------- 91,350 61,150

Inventories--------------------------------- 104,500 109,500

Prepaid expenses-------------------------------- 3,600 2,700

Land--------------------------------------- 50,000 50,000

Equipment---------------------------------- 580,000 500,000

Accumulated depreciation------------------- (212,600) (175,400)

Patents-------------------------------------- 35,000 40,000

Total Assets $703,950 $630,450

======= =======

Liabilities and Stockholder’s Equity

Accounts payable-------------------------- $ 61,150 $ 75,000

Dividends payable------------------------- 12,000 10,000

Salaries payable---------------------------- 6,650 7,550

Mortgage note payable, due 20x9---------- 50,000 0

Bonds payable----------------------------- 0 75,000

Common stock, $20 par------------------- 300,000 250,000

Premium on common stock----------------- 100,000 75,000

Retained earnings--------------------------- 174,150 137,900

Total Liabilities and Stockholder’s Equity $703,950 $630,450

====== =======

An examination of the income statement and the accounting records revealed the following additional information applicable to the current year:

Net income, $96,250.
Depreciation expense reported on the income statement $37,200.
Patent amortization reported on the income statement $5,000.
A mortgage note for $50,000 was issued for cash.
Equipment was purchased for $80,000 cash.
2,500 shares of common stock were issued at a premium for $30 per share cash.
Bonds payable were retired for cash.
Cash dividends declared, $60,000

Continued next page:

REQUIRED: Using the form provided below, prepare a statement of cash flow using the indirect method.

Present your answers in the exact same format as below describing each section and sub-section.

Cash Flows From Operating Activities:

Net Income(Loss)

Items Affecting Net Income But Not Cash:

Add:

Deduct:

Current Assets & Current Liabilities:

Add: Increase in

Add: Decrease in

Deduct: Increase in

Deduct: Decrease in

Deduct: Decrease in__________________________

Net Cash______(Flow or Used)From Operating Activities-----------------

Cash Flows From Investing Activities:

Add: Sale of

Deduct: Purchase of

Deduct: _Purchase of_______________________________________________

Net Cash_________(Flow or Used) From Investing Activities-----------------------------

Cash Flows from Financing Activities:

Add: Issuance of

Deduct: Retirement of

Deduct: Payment of

Deduct:_Payment of_______________________________________

Net Cash_________(Flow or Used) From Financing Activities-----------------------------

Net Increase (Decrease) In Cash______________

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Expert Solution

ekkarill92 answered 1 year ago

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