Question

The balance sheet for Bostick Corporation? follows:

	Ending balance	Beginning balance
?Assets:
Current? assets:
Cash and cash equivalents	$52,600	?$44,600
Accounts receivable	$18,300	?$22,300
Inventory	$48,500	?$53,000
Total current assets	$119,400	?$119,900
?Property, plant, and equipment	?$287,800	?$275,300
Less accumulated depreciation	$109,000	?$101,550
Net? property, plant, and equipment	$178,800	?$173,750
Total assets	$298,200	?$293,650
Liabilities and? stockholders' equity:
Current? liabilities:
Accounts payable	?$26,030	?$29,580
Wages payable	?$41,600	?$47,100
Other accounts payable	$42,200	?$35,400
Notes payable	?$24,200	?$25,200
Total current liabilities	$134,030	?$137,280
Longminus?term debt	?$73,500	?$79,500
Deferred income taxes	$19,500	?$17,000
Total liabilities	$227,030	?$96,500
?Stockholders' equity:
Common stock	$46,750	?$45,000
Retained earnings	$24,420	?$14,870
Total? stockholders' equity	$71,170	?$59,870
Total liabilities and? stockholders' equity	$298,200	?$293,650

Operating income during the period was $20,450?, while cash dividends paid were $10,900. The total sources of cash at Bostick Corporation during the year was?

Answer 1

Cash inflow from operating activities $35,650

Cash outflow from investing activities -$12,500

Cash outflow from financing activities -$15,150

Net cash flow for the year $8,000

Working:

BOSTIC CORPORATION
Cash flow statement
Cash flow from operating activities:
Operating income		20450
Adjustment for non cash items
Depreciation expense *		7450
Adjustment for changes in working capital
Decrease in accounts receivable	4000
Decrease in inventory	5000
Decrease in accounts payable	-3550
Decrease in wages payable	-5500
Increase in other accounts payable	6800
Decrease in notes payable	1000	7750
Cash flow from operating activities		35650
Cash flow from investing activities :
Purchase of property , plant and equipment **	-12500
Cash flow from investing activities		-12500
Cash flow from financing activities:
Repayment of long term liabilities (73,500 - 79,500)	-6000
Dividends paid ***	-10900
Issue of comon stock (46,750 - 45,000)	1750
Cash flow from financing activities		-15150
Cash addition		8000
Beginning cash balance		44600
Ending cash balance		52600
Accumulated depreciation, ending	109000
Less: Accumulated depreciation, beginning	101550
Depreciation expense for the year *	7450
Property, plant and equipment, ending	287800
Less: Property, plant and equipment, beginning	275300
Purchase of property , plant and equipment **	12500
Retained earnings , beginning	14870
Add: Net operating income	20450
Total	35320
Retained earnings , ending	24420
Cash dividends paid ***	10900