Question

He said “you are in luck – no need to create my 2016 Balance Sheet – my daughter, who is an accountant, created the one attached below in Appendix B1.” You are relieved! “However,” he continued, “she did not have time to complete a cash flow statement. I need you to create one for me. And, could you tell me, (cause I have forgotten) what was paid out to me as a dividend?” Please create a cash flow statement for 2016 and answer the question – how much was paid out to Mr. X as a dividend?

Appendix B1: OBD Incorporated Balance Sheet - As at December 31,2016 Current Assets Cash AR Inventony Total Current Assets $ 200,000 $ 125,000 $ 187,500 $ 512500 Fixed Assets Acc Dep Net Fxed Assets $ 45,000 $5,000 $40,000 Total Assets $ 552,500 Current Labilites AP Accrued Expenses Payable$ Total Current $ 62,500 68,750 $ 131,250 Long Term Liabilities Bank Loan Total LT LEabilities $ 300,000 $ 300,000 $ 431,250 $ 121,250 $ 552,500 Total Liabilities Total Equity Total Liabitles + Equity

Income Statement for OBD Inc. for Year Ending December 31, 2016
Sales	1,250,000
Cost of Goods Sold	562,500
Gross Profit	687,500
Selling and Administration	495,000
Depreciation	5,000
Operating Profit	187,500
Interest	21,000
Earnings before taxes	166,500
Taxes	49,950
Net Income	116,550

Answer 1