Question

The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:

1		Dec. 31, 20Y3	Dec. 31, 20Y2
2	Assets
3	Cash	$626,100.00	$585,190.00
4	Accounts receivable (net)	228,630.00	208,060.00
5	Inventories	641,030.00	617,620.00
6	Investments	0.00	239,830.00
7	Land	328,160.00	0.00
8	Equipment	705,110.00	553,850.00
9	Accumulated depreciation-equipment	(166,840.00)	(147,700.00)
10	Total assets	$2,362,190.00	$2,056,850.00
11	Liabilities and Stockholders’ Equity
12	Accounts payable (merchandise creditors)	$423,690.00	$404,660.00
13	Accrued expenses payable (operating expenses)	42,340.00	53,240.00
14	Dividends payable	23,050.00	18,680.00
15	Common stock, $4 par	156,000.00	93,000.00
16	Paid-in capital: Excess of issue price over par—common stock	417,000.00	279,200.00
17	Retained earnings	1,300,110.00	1,208,070.00
18	Total liabilities and stockholders’ equity	$2,362,190.00	$2,056,850.00

Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:

A.	The investments were sold for $279,300 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 $188,740 credit to Retained Earnings for net income.
F.	There was a $96,700 debit to Retained Earnings for cash dividends declared.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Labels and Amount Descriptions

Labels and Amount Descriptions
Cash paid for dividends
Cash paid for merchandise
Cash paid for purchase of equipment
Cash paid for purchase of land
Cash received from customers
Cash received from sale of common stock
Cash received from sale of investments
Change in cash
December 31, 20Y3
Decrease in accounts payable
Decrease in accounts receivable
Decrease in accrued expenses payable
Decrease in inventories
Depreciation
For the Year Ended December 31, 20Y3
Gain on sale of investments
Increase in accounts payable
Increase in accounts receivable
Increase in accrued expenses payable
Increase in inventories
Loss on sale of investments
Net cash flow from operating activities
Net cash flow used for operating activities
Net cash flow from investing activities
Net cash flow used for investing activities
Net cash flow from financing activities
Net cash flow used for financing activities
Net income
Net loss

Statement of Cash Flows

Shaded cells have feedback.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Score: 136/173

Livers Inc.

Statement of Cash Flows

✔

1	Cash flows from operating activities:
2	✔	✔
3	Adjustments to reconcile net income to net cash flow from operating activities:
4	✔	✔
5	✔	✔
6	Changes in current operating assets and liabilities:
7	✔	✔
8	✔	✔
9	✔	✔
10	✔	✔
11	✔		✔
12
13	Cash flows from investing activities:
14	✔
15	✔	✔
16
17
18
19	Cash flows from financing activities:
20	✔
21	✔	✔
22	✔
23			✔
24	Cash at the beginning of the year		✔
25	Cash at the end of the year		✔

Please answer questions filling in the blanks or excel. Thank you

Answer 1

Statement of Cash Flows of Lives Inc.

	Cash Flows from Operating Activities	$
1.	Cash Flows from Net Income	188740
2.	Depreciation	19140
3.	Gain on sale of Investment (279300-239830)	-39470
	Cash flows from changes in Current Operating Assets and Liabilities
4.	Increase in Account Receivable	-20570
5.	Increase in Inventory	-23410
6.	Increase in Account Payble	19030
7.	Decrease in Accrued Expenses Payble	-10900
	Net Cash flows from Operating Activities		132560
	Cash flows from Investing Activities
8.	Cash flows from Sale of Investment	279300
9.	Cash outflows from purchas of Land	-328160
10.	Cash outflows from purchas of Equipment	-151260
	Net Cash Outflows from Investing Activities		-200120
	Cash Flows from Financial Activities
11.	Cash flows from Issues of Common Stock	200800
12.	Cash Outflow from Dividend paid (18680+96700-23050)	-92330
	Net Cash Inflows from Financial Activities		108470
	Csh at the beginning of the year		585190
	Cash at the end of year		626100