In: Accounting
q.30
Following are selected balance sheet accounts of Del Conte Corp.
at December 31, 2018 and 2017, and the increases or decreases in
each account from 2017 to 2018. Also presented is selected income
statement information for the year ended December 31, 2018, and
additional information.
Selected Balance Sheet Accounts | 2018 | 2017 | Increase (Decrease) |
||||||
Assets | |||||||||
Accounts receivable | $ | 72,000 | $ | 43,000 | $ | 29,000 | |||
Property, plant, and equipment | 315,000 | 266,000 | 49,000 | ||||||
Accumulated depreciation | (216,000 | ) | (186,000 | ) | 30,000 | ||||
Liabilities and Stockholders’ Equity | |||||||||
Bonds payable | 106,000 | 84,000 | 22,000 | ||||||
Dividends payable | 17,500 | 12,600 | 4,900 | ||||||
Common stock, $1 par | 60,000 | 38,000 | 22,000 | ||||||
Additional paid-in capital | 18,500 | 10,600 | 7,900 | ||||||
Retained earnings | 142,000 | 110,000 | 32,000 | ||||||
Selected Income Statement Information for the Year Ended December 31, 2018 | |||||||||
Sales revenue | $ | 193,000 | |||||||
Depreciation | 71,000 | ||||||||
Gain on sale of equipment | 22,500 | ||||||||
Net income | 66,000 | ||||||||
Additional information:
Required:
Items 1 through 5 represent activities that will be reported in Del
Conte's statement of cash flows for the year ended December 31,
2018. The following two responses are required for each
item:
don't forget to out category
Depreciation on equipment sold = $71000 - 30000 = $41000
Since items for which it is to be stated as nature of activity with amount is not given, i have provided cash flow statement with proper classification where you will find what is required. If you have any query, kindly comment with your query
Cash Flow Statement | ||||
Indirect Method | ||||
Cash flow from Operating Activities | ||||
Net Income | $ 66,000 | |||
Adjustments | ||||
Depreciation | $ 71,000 | |||
Gain on sale of equipment | $ -22,500 | |||
Increase in Accounts Receivable | $ -29,000 | |||
Total Adjustments | $ 19,500 | |||
Net Cash from operating activities | $ 85,500 | |||
Cash flow from Investing Activities | ||||
Sale of Equipment | $ 59,500 | =78000-41000+22500 | ||
Purchase of Equipment | $ -69,000 | =-(49000+78000-58000) | ||
Net Cash used by investing activities | $ -9,500 | |||
Cash flow from Financing Activities | ||||
Repayment of Bonds Payable | $ -36,000 | =22000-58000 | ||
Issue of Common Stock | $ 29,900 | =22000+7900 | ||
Payment of cash dividends | $ -29,100 | =-(66000-32000+12600-17500) | ||
Net Cash used by financing activities | $ -35,200 | |||
Net Increase in cash | $ 40,800 | |||
Non-Cash Investing and Financing Activities | ||||
Issue of Bonds Payable for PPE | $ 58,000 |