In: Accounting
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows:
1 |
Dec. 31, 20Y3 |
Dec. 31, 20Y2 |
|
2 |
Assets |
||
3 |
Cash |
$626,170.00 |
$585,760.00 |
4 |
Accounts receivable (net) |
227,840.00 |
208,880.00 |
5 |
Inventories |
641,390.00 |
616,790.00 |
6 |
Investments |
0.00 |
240,820.00 |
7 |
Land |
327,380.00 |
0.00 |
8 |
Equipment |
704,290.00 |
554,020.00 |
9 |
Accumulated depreciation-equipment |
(167,160.00) |
(148,930.00) |
10 |
Total assets |
$2,359,910.00 |
$2,057,340.00 |
11 |
Liabilities and Stockholders’ Equity |
||
12 |
Accounts payable (merchandise creditors) |
$424,670.00 |
$404,080.00 |
13 |
Accrued expenses payable (operating expenses) |
43,080.00 |
52,050.00 |
14 |
Dividends payable |
24,920.00 |
19,300.00 |
15 |
Common stock, $2 par |
150,000.00 |
100,000.00 |
16 |
Paid-in capital: Excess of issue price over par—common stock |
417,500.00 |
280,000.00 |
17 |
Retained earnings |
1,299,740.00 |
1,201,910.00 |
18 |
Total liabilities and stockholders’ equity |
$2,359,910.00 |
$2,057,340.00 |
The income statement for the year ended December 31, 20Y3, is as follows:
1 |
Sales |
$5,367,766.00 |
|
2 |
Cost of goods sold |
3,306,180.00 |
|
3 |
Gross profit |
$2,061,586.00 |
|
4 |
Operating expenses: |
||
5 |
Depreciation expense |
$18,230.00 |
|
6 |
Other operating expenses |
1,755,888.00 |
|
7 |
Total operating expenses |
1,774,118.00 |
|
8 |
Operating income |
$287,468.00 |
|
9 |
Other income: |
||
10 |
Gain on sale of investments |
39,070.00 |
|
11 |
Income before income tax |
$326,538.00 |
|
12 |
Income tax expense |
133,028.00 |
|
13 |
Net income |
$193,510.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
a. The investments were sold for $279,890 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 $95,680 debit to Retained Earnings for cash dividends declared. |
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign.
Labels and Amount Descriptions
Labels and Amount Descriptions |
|
Cash paid for dividends | |
Cash paid for purchase of equipment | |
Cash paid for purchase of land | |
Cash paid for purchase of treasury stock | |
Cash payments for income taxes | |
Cash payments for merchandise | |
Cash payments for operating expenses | |
Cash received from customers | |
Cash received from sale of common stock | |
Cash received from sale of investments | |
Change in cash | |
December 31, 20Y3 | |
Depreciation | |
For the Year Ended December 31, 20Y3 | |
Gain on sale of investments | |
Issuance of common stock for acquisition of land | |
Issuance of common stock for purchase of equipment | |
Loss on sale of investments | |
Net cash flow from financing activities | |
Net cash flow from investing activities | |
Net cash flow from operating activities | |
Net cash flow used for financing activities | |
Net cash flow used for investing activities | |
Net cash flow used for operating activities |
Can you show Calculations thanks
Livers Inc. | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 20Y3 | ||
Cash flows from operating activities: | ||
Cash received from customers | 5348806.00 | |
Cash payments for merchandise | -3310190.00 | |
Cash payments for operating expenses | -1764858.00 | |
Cash payments for income taxes | -133028.00 | |
Net cash flow from operating activities | 140730.00 | |
Cash flows from investing activities: | ||
Cash received from sale of investments | 279890.00 | |
Cash paid for purchase of land | -327380.00 | |
Cash paid for purchase of equipment | -150270.00 | |
Net cash flow used for investing activities | -197760.00 | |
Cash flows from financing activities: | ||
Cash received from sale of common stock | 187500.00 | |
Cash paid for dividends | -90060.00 | |
Net cash flow from financing activities | 97440.00 | |
Change in cash | 40410.00 | |
Cash at the beginning of the year | 585760.00 | |
Cash at the end of the year | 626170.00 |
Calculations:
Cash received from customers | |
Sales Revenue | 5367766.00 |
Less: Increase in Accounts Receivable | -18960.00 |
5348806.00 | |
Cash payments for merchandise | |
Cost of goods sold | 3306180.00 |
Add: Increase in Inventory | 24600.00 |
Less: Increase in Accounts Payable | -20590.00 |
3310190.00 | |
Cash payments for operating expenses | |
Other operating expenses | 1755888.00 |
Add: Decrease in Accrued expenses payable | 8970.00 |
1764858.00 | |
Cash paid for dividends | |
Dividends payable, beginning balance | 19300.00 |
Add: Dividends declared | 95680.00 |
114980.00 | |
Less: Dividends payable, ending balance | -24920.00 |
90060.00 | |
Cash received from sale of common stock | |
Common stock, ending balance | 150000.00 |
Paid-in capital, ending balance | 417500.00 |
567500.00 | |
Less: Common stock, beginning balance | -100000.00 |
Less: Paid-in capital, beginning balance | -280000.00 |
187500.00 |