In: Accounting
Boatwig, Corp. | |||||
Balance Sheet | |||||
December 31, 2013 and December 31, 2014 | |||||
2013 | Dr. | Cr. | 2014 | ||
Assets | |||||
Cash | $19,000 | $71,000 | |||
Accounts Receivable | 66,000 | 84,000 | |||
Inventory | 185,000 | 184,000 | |||
Land | 113,000 | 67,000 | |||
Equipment | 195,000 | 256,000 | |||
Accummulated Depreciation | (42,000) | (69,000) | |||
Total | $536,000 | $593,000 | |||
Liabilities and Stockholders' Equity | |||||
Accounts Payable | $44,000 | $36,000 | |||
Bonds Payable | 198,000 | 143,000 | |||
Common Stock | 167,000 | 222,000 | |||
Retained Earnings | 127,000 | 192,000 | |||
Total | $536,000 | - | - | $593,000 | |
Additional Information: | |||||
1. Net income for 2014 | $125,000 | ||||
2. No gains or losses were recorded in 2014 | |||||
3. Cash dividends declared and paid | $60,000 | ||||
4. Bonds payable retired by issuing common stock | $55,000 | ||||
In the space below, prepare a Statement of Cash Flows for the year ended December 31, 2014: | |||||
Use the worksheet (above) to aid your work if you like…. I will grade the resulting cash flow statement (below) only. |
BOATWIG, CORP. | ||
Statement of Cash Flows (Indirect Method) | ||
For Year Ended December 31, 2014 | ||
Cash Flows from Operating Activities | ||
Net income | 125000 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation expense | 27000 | |
Changes in current operating assets and liabilities | ||
Increase in Accounts Receivable | -18000 | |
Decrease in Inventory | 1000 | |
Decrease in Accounts payable | -8000 | 2000 |
Net cash provided by operating activities | 127000 | |
Cash Flows from Investing Activities | ||
Cash paid for equipment purchase | -61000 | |
Cash received from sale of land | 46000 | |
Net cash used in investing activities | -15000 | |
Cash Flows from Financing Activities | ||
Cash paid for dividends | -60000 | |
Net cash used in financing activities | -60000 | |
Net increase (decrease) in cash | 52000 | |
Cash balance, December 31, 2013 | 19000 | |
Cash balance, December 31, 2014 | 71000 |
Note: Bonds payable retired by issuing common stock is not included in the cash flow statement since it does not involve any cash flow and is an intra-financing activity.