Question

Some recent financial statements for Smolira Golf Corp. follow.

  

SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets
Assets									Liabilities and Owners’ Equity
	2017				2018					2017				2018
Current assets									Current liabilities
Cash	$	35,985			$	39,308			Accounts payable	$	39,562			$	43,382
Accounts receivable		18,601				29,206			Notes payable		20,608				17,400
Inventory		4,090				43,272			Other		21,304				25,914
Total	$	58,676			$	111,786			Total	$	81,474			$	86,696
									Long-term debt	$	123,000			$	189,270
									Owners’ equity
									Common stock and paid-in surplus	$	56,600			$	56,600
									Accumulated retained earnings		263,647				301,253
Fixed assets
Net plant and equipment	$	466,045			$	522,033			Total	$	320,247			$	357,853
Total assets	$	524,721			$	633,819			Total liabilities and owners’ equity	$	524,721			$	633,819

SMOLIRA GOLF CORP. 2018 Income Statement
Sales					$	514,454
Cost of goods sold						364,928
Depreciation						46,463
Earnings before interest and taxes					$	103,063
Interest paid						21,283
Taxable income					$	81,780
Taxes (21%)						17,174
Net income					$	64,606
Dividends	$	27,000
Retained earnings		37,606

Prepare the 2018 statement of cash flows for Smolira Golf Corp. (Negative answers should be indicated by a minus sign.)

Answer 1

Purchase of plant and equipment = Net plant and equipment, 2018 + Depreciation - Net plant and equipment, 2017
Purchase of plant and equipment = $522,033 + $46,463 - $466,045
Purchase of plant and equipment = $102,451