Question

Panther Marine

Instructions: Using the "changes columns" from the adjusted trial balance worksheet AND the below additional information to create a statement of cash flows using the INDIRECT METHOD. Round all amounts to the nearest cent. The rest of the formatting is up to the student. Note that grades are based on organization and clarity of this financial statement. Other required items and additional information are:

a. Only use accounts that have changes or cash flows

b. Proper report title

c. Net change in cash, beginning cash balance, ending cash balance and cash per balance sheet MUST be included

d. All cash flow activities must be identified, organized, totaled, and clearly labeled

e. Assume all investment changes utilized only cash

f. Valuation allowance change is an investing activity

g. Assume all financing changes utilized only cash

h. Panther Marine considers bonds and notes as financing activities June 30, 2016 June 30, 2017 Adjusted Adjusted Trial Balance Changes Trial Balance Acct. No. Account Title Dr. Cr. Debit Credit Dr. Cr 100 Cash            562,480.00           183,490.91           378,989.09 102 Accounts Receivable            822,633.00             67,233.00           755,400.00 103 Allowance for Doubtful Accounts             25,643.00              5,826.11             19,816.89 104 Merchandise Inventory            440,980.00             94,630.00           346,350.00 105 Estimated Returns Inventory              56,450.00             12,909.00             43,541.00 106 Office Supplies                1,250.00              1,215.00              2,465.00 107 Prepaid Insurance              12,500.00              2,000.00             10,500.00 120 Investments - Trading              45,000.00             15,000.00             60,000.00 121 Investments - Available for Sale              14,650.00             11,800.00             26,450.00 122 Investments - Held to Maturity              23,850.00             16,155.01             40,005.01 123 Valuation Allowance              27,000.00             62,000.00             35,000.00 140 Land         1,743,777.65           761,777.36        2,505,555.01 145 Building         1,893,723.48             50,000.00        1,843,723.48 146 Accumulated Depreciation - Building        1,504,955.01        1,500,000.00 151 Equipment              51,000.00             10,000.00             61,000.00 152 Accumulated Depreciation - Equipment             28,000.00             30,000.00 153 Office Furniture              32,500.00             10,000.00             22,500.00 154 Accumulated Depreciation - Office Furniture              3,500.00              4,500.00 201 Accounts Payable        1,156,000.00           251,150.00           904,850.00 202 Wages Payable                        -                          -   203 Interest Payable                        -                          -   204 Dividends Payable                        -                          -   205 Unearned Rent              6,000.00              2,000.00              4,000.00 206 Customer Refunds Payable             35,682.00              6,654.60             29,027.60 250 Notes Payable             12,000.00           200,000.00           212,000.00 251 Bonds Payable           200,000.00           200,000.00           400,000.00 252 Premium on Bonds Payable                        -                          -   253 Discount on Bonds Payable                         -                          -   252 Mortgage (Warehouse) Payable           248,000.00             50,000.00           198,000.00 300 Common Stock, $1 Par, 100,000 Authorized; 65,500 shares Issued/Outstanding             50,000.00             15,500.00             65,500.00 301 Paid In Capital - Excess of Par           356,000.00           154,544.99           510,544.99 330 Retained Earnings        2,388,379.11        2,140,014.12 331 Cash Dividends                         -             100,000.00           100,000.00 340 Treasury Stock              38,000.00             20,000.00             18,000.00 341 Unrealized (Gain) Loss Available for Sale Securities                         -                          -                          -                          -   500 Sales        1,142,580.00        1,468,529.98 600 Cost of Goods Sold            450,199.00           482,159.00 700 Wage Expense (hourly workers)            594,515.01           399,500.00 701 Salaries Expense (Exempt Staff)              89,000.00           129,000.00 702 Marketing Expense              65,000.00             75,000.00 703 Travel and Entertainment Expense                  525.00                 925.00 704 Bad Debt Expense                5,816.88              9,816.88 705 Property Tax Expense            111,104.10                        -   706 Office Maintenance & Repair Expense                         -                          -   707 Legal Expenses                         -                5,400.00 708 Insurance Expense                1,500.00              3,500.00 709 Utilities Expense              48,985.00             68,624.12 710 Office Supplies Expense                  400.00                 735.00 711 Telecommunications Expense                         -                   100.00 712 Depreciation Expense - Building                         -             100,000.00 713 Depreciation Expense - Equipment                4,000.00              2,000.00 714 Depreciation Expense - Office Furniture                  500.00              1,000.00 800 Rent Income                        -                2,000.00 801 Unrealized Gain - Trading Securities                        -                6,000.00 802 Realized Gain - Investment Securities                        -               51,955.01 900 Interest Expense                5,400.00             12,500.00 901 Unrealized Loss - Trading Securities              10,000.00             68,000.00 902 Realized Loss - Investment Securities                4,000.00              9,000.00 Total        7,156,739.120      7,156,739.120      7,581,738.590      7,581,738.590         1,390,944.99        1,142,580.00        1,367,260.00        1,528,484.99 Net Income (Loss)          (248,364.99)           161,224.99

Answer 1

Net Income/Loss before Income and Social Contribution Taxes (US$ thousand)	161224.9
Reconciliation of Net Income to Net Cash provided by Operating Activities: (US$ thousand)
Depreciation and Amortization (US$ thousand)	4500
Insurance	2000
Liabilities for acquisition of investments - update (US$ thousand)	15000
Provision for doubtful accounts (US$ thousand)	5826.11
Interest Expenses (US$ thousand)	5400
(Increase) Decrease in Assets: (US$ thousand)
Trade Accounts Receivable (US$ thousand)	67233
Inventories (US$ thousand) (a/C 104,105 & 106)	106324
Increase (decrease) of Liabilities: (US$ thousand)
Suppliers (US$ thousand)	-257804.6
Unearned Rent	-2000
Cash provided by Operating Activities (US$ thousand)	107703.41
Cash Flows from Investing Activities (US$ thousand)
Proceeds from the sale of fixed assets (US$ thousand)	60000
Valuation allowance change	-62000
Acquisition of Investment (US$)	-27955.01
Goodwill paid on Acquisition of Investment (US$ thousand)	-
Acquisition of Intangible Assets (US$ thousand)	-
Acquisition of Property, Plant and Equipment (US$ thousand)	-771777.4
Net Cash used in Investing Activities (US$ thousand)	-801732.4
Cash Flows from Financing Activities (US$ thousand)
Notes and Bonds payable	400000
Paid inc apital	154544.9
Mortgage payable	-50000
Common stock	15500
Cash dividend	-100000
Treasury Stock	-20000
Net Cash used in Financing Activities (US$ thousand)	400044.9
Effect of exchange rate changes on cash and cash equivalents (US$ thousand)	-
Decrease in Cash and Cash Equivalents for the Period (US$ thousand)	-293984.1
Cash and Cash Equivalents at Beginning of the Period (US$ thousand)	562480
Cash and Cash Equivalents at End of the Period (US$ thousand)	378989.09