Question

The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows:

1		Dec. 31, 20Y3	Dec. 31, 20Y2
2	Assets
3	Cash	$625,680.00	$586,230.00
4	Accounts receivable (net)	228,100.00	208,850.00
5	Inventories	640,910.00	617,650.00
6	Investments	0.00	240,620.00
7	Land	328,090.00	0.00
8	Equipment	704,540.00	553,320.00
9	Accumulated depreciation-equipment	(166,310.00)	(147,840.00)
10	Total assets	$2,361,010.00	$2,058,830.00
11	Liabilities and Stockholders’ Equity
12	Accounts payable	$425,280.00	$404,550.00
13	Accrued expenses payable	41,990.00	52,020.00
14	Dividends payable	24,190.00	20,170.00
15	Common stock, $4 par	142,000.00	106,000.00
16	Paid-in capital: Excess of issue price over par—common stock	416,700.00	279,900.00
17	Retained earnings	1,310,850.00	1,196,190.00
18	Total liabilities and stockholders’ equity	$2,361,010.00	$2,058,830.00
	Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: A. The investments were sold for $279,190 cash. B. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. D. The common stock was issued for cash. E. There was a $211,240 credit to Retained Earnings for net income. F. There was a $96,580 debit to Retained Earnings for cash dividends declared.

Labels and Amount Descriptions
Cash used for dividends
Cash used for merchandise
Cash used for purchase of equipment
Cash used for purchase of land
Cash received from customers
Cash from sale of common stock
Cash from sale of investments
December 31, 20Y3
Decrease in accounts payable
Decrease in accounts receivable
Decrease in accrued expenses payable
Decrease in inventories
Decrease in cash
Depreciation
For the Year Ended December 31, 20Y3
Gain on sale of investments
Increase in accounts payable
Increase in accounts receivable
Increase in accrued expenses payable
Increase in cash
Increase in inventories
Loss on sale of investments
Net cash flow from operating activities
Net cash flow used for operating activities
Net cash flow from investing activities
Net cash flow used for investing activities
Net cash flow from financing activities
Net cash flow used for financing activities
Net income

Answer:

Navaria Inc.

Statement of Cash Flows

1	Cash flows from operating activities:
2
3	Adjustments to reconcile net income to net cash flow from operating activities:
4
5
6	Changes in current operating assets and liabilities:
7
8
9
10
11
12
13	Cash flows from (used for) investing activities:
14
15
16
17
18
19	Cash flows from (used for) financing activities:
20
21
22
23
24	Cash at the beginning of the year
25	Cash at the end of the year

Answer 1

Answer-

NAVARIA INC
STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)
FOR THE YEAR ENDED 31 DECEMBER,20Y3
Particulars		Amount
		$
Cash flow from operating activities
Net Income		211240
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation	($166310-$147840)	18470
Gain on sale of Investments	($279190-$240620)	-38570
Change in operating assets & liabilities
Increase in accounts receivable		-19250
Increase in inventory		-23260
Increase in accounts payable		20730
Decrease in accrued expenses payable		-10030
Net cash flow from operating activities (a)		159330
Cash Flow from Investing activities
New equipment purchased	($704540-$553320)	-151220
Land purchased		-328090
Investments sold		279190
Net cash Flow from Investing activities (b)		-200120
Cash Flow from Financing activities
Cash dividends paid	($96580-$24190+$20170)	-92560
Common stock issued		172800
Net cash Flow from Financing activities (c)		80240
Net Change in cash c=a+b+c		39450
Beginning cash balance		586230
Closing cash balance		625680