Question

The income statement and additional data of Daily ?Plus, Inc.? follows:

a.	Acquisition of plant assets is $116,000. Of this? amount, $106,000 is paid in cash and $10,000 by signing a note payable.
b.	Cash receipt from sale of land totals $21,000.There was no gain or loss.
c.	Cash receipts from issuance of common stock total $34,000.
d.	Payment of note payable is $9,000.
e.	Payment of dividends is $12,000.
f.	From the balance? sheet:

	September 30
	2018		2017
Cash	$35,000		$15,000
Accounts Receivable	42,000		51,000
Merchandise Inventory	89,000		82,000
Land	74,000		95,000
Plant Assets	201,000		85,000
Accumulated Depreciation	(48,000)		(24,000)
Accounts Payable	36,000		27,000
Accrued Liabilities	17,000		27,000
Notes Payable (long-term)	10,000		9,000
Common Stock, no par	41,000		7,000
Retained Earnings	289,000		234,000

Daily Plus, Inc.
Income Statement
Year Ended September 30, 2018
Net Sales Revenue		$237,000
Cost of Goods Sold		92,000
Gross Profit		145,000
Operating Expenses:
Salaries Expense	$50,000
Depreciation Expense—Plant Assets	24,000
Total Operating Expenses		74,000
Net Income Before Income Taxes		71,000
Income Tax Expense		4,000
Net Income		$67,000

Prepare Daily ?Plus's statement of cash flows for the year ended September ?30, 2018?, using the indirect method. Include a separate section for? non-cash investing and financing activities.

Complete the statement one section at a? time, beginning with the cash flows from operating activities. ?(Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the? statement, leave the box? empty; do not select a label or enter a? zero.)

Daily Plus, Inc.

Statement of Cash Flows

Year Ended September 30, 2018

Cash Flows from Operating Activities: ____________

Net Income

Adjustments to Reconcile Net Income to Net Cash

Provided by (Used for) Operating Activities:

BUNCH OF BLANKS

Net Cash Provided by (Used for) Operating Activities __________

Cash Flows from Investing Activities:

BUNCH OF BLANKS

Net Cash Provided by (Used for) Investing Activities __________

Cash Flows from Financing Activities:

BUNCH OF BLANKS

Net Cash Provided by (Used for) Financing Activities ___________

Net Increase (Decrease) in Cash ___________

Cash Balance, September 30, 2017 ___________

Cash Balance, September 30, 2018 ___________

Non-cash Investing and Financing Activities:

TWO LINES OF BLANKS

Total Non-cash Investing and Financing Activities ___________

Answer 1

Solution:

Statement of Cash Flows - Daily Plus Inc. For the year ended Sep 30, 2018
Particulars	Details	Amount
Cash Flow from Operating Activities:
Net Income		$67,000.00
Adjustments to reconcile net income to cash flow from operating activities:
Depreciation	$24,000.00
Decrease in Accounts Receivables ($51,000 - $42,000)	$9,000.00
Increase in Inventory ($89,000 - $82,000)	-$7,000.00
Increase in Accounts payable ($36,000 - $27,000)	$9,000.00
Decrease in Accrued Liabilities ($27,000 - $17,000)	-$10,000.00
Total Adjustments		$25,000.00
Net Cash Flow From Operating Activites (A)		$92,000.00
Cash Flow from Investing Activities:
Cash received from sale of land	$21,000.00
Acquistion of Plant Assets	-$106,000.00
Net Cash Flow From Investing Activites (B)		-$85,000.00
Cash Flow from Financing Activities:
Dividend paid	-$12,000.00
Payment of long term note	-$9,000.00
Proceed from issue of common stock	$34,000.00
Net Cash Flow From Financing Activites (C)		$13,000.00
Total Cash flow from all activities (A+B+C)		$20,000.00
Cash at the beginning of the year		$15,000.00
Cash at the end of year		$35,000.00
Non Cash investing & Financing Activities:
Purchase of machine by issuing long term note		$10,000.00