In: Accounting
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, 20Y6 | |
Depreciation | |
For the Year Ended December 31, 20Y6 | |
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 |
1 |
Dec. 31, 20Y6 |
Dec. 31, 20Y5 |
|
2 |
Assets |
||
3 |
Cash |
$643,460.00 |
$679,530.00 |
4 |
Accounts receivable (net) |
566,490.00 |
548,320.00 |
5 |
Inventories |
1,010,720.00 |
982,600.00 |
6 |
Investments |
0.00 |
240,910.00 |
7 |
Land |
519,510.00 |
0.00 |
8 |
Equipment |
879,710.00 |
680,990.00 |
9 |
Accumulated depreciation |
(243,750.00) |
(200,970.00) |
10 |
Total assets |
$3,376,140.00 |
$2,931,380.00 |
11 |
Liabilities and Stockholders’ Equity |
||
12 |
Accounts payable (merchandise creditors) |
$772,290.00 |
$748,770.00 |
13 |
Accrued expenses payable (operating expenses) |
63,970.00 |
69,800.00 |
14 |
Dividends payable |
8,000.00 |
7,040.00 |
15 |
Common stock, $2 par |
56,000.00 |
32,000.00 |
16 |
Paid-in capital: Excess of issue price over par—common stock |
408,000.00 |
192,000.00 |
17 |
Retained earnings |
2,067,880.00 |
1,881,770.00 |
18 |
Total liabilities and stockholders’ equity |
$3,376,140.00 |
$2,931,380.00 |
The income statement for the year ended December 31, 20Y6, is as follows:
1 |
Sales |
$5,974,620.00 |
|
2 |
Cost of goods sold |
2,451,470.00 |
|
3 |
Gross profit |
$3,523,150.00 |
|
4 |
Operating expenses: |
||
5 |
Depreciation expense |
$42,780.00 |
|
6 |
Other operating expenses |
3,099,440.00 |
|
7 |
Total operating expenses |
3,142,220.00 |
|
8 |
Operating income |
$380,930.00 |
|
9 |
Other expense: |
||
10 |
Loss on sale of investments |
(64,890.00) |
|
11 |
Income before income tax |
$316,040.00 |
|
12 |
Income tax expense |
102,160.00 |
|
13 |
Net income |
$213,880.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows:
a. Equipment and land were acquired for cash. | |
b. There were no disposals of equipment during the year. | |
c. The investments were sold for $176,020 cash | |
d. The common stock was issued for cash. | |
e. There was a $27,770 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.
+Cash flows from operating activities (Direct Method)
Cash received from customers (Note 1) 5956450
+ cash received from operating income 380930
-Cash payments for merchandise (Note 2) 2456070
-Cash payments for operating expenses (Note 3) 3105270
-Cash payments for income taxes (Note 4) 102160
Net cash flows from operating activity 673880
Note 1
Sales 5974620
+Account Receivable (Beginning) 548320
-Account Receivable (Ending) 566490
Net cash received from customers. 5956450
Note 2
COGS 2451470
+Increase in inventories (Closing-Opening) 28120
- Increase in Account payable (Closing-Opening) 23520
Net payments for merchandise 2456070
Note 3
Operating expenses ( without depreciation) 3099440
+Decrease in accrued expenses payable (Opening- Closing) 5830
Net cash payments for operating expenses. 3105270
Note 4
Income tax expense for the year. 102160
+ Opening tax expenses. Nil
- Closing tax expenses Nil
Cash payments for income taxes 102160