Question

Devin E Corporation
Balance Sheet
As of December 31,
	2015		2014
Assets:
Cash & Cash Equivalents	$41,900		$25,000
Accounts Receivable	24,000		6,250
Inventory	30,000		36,000
Current Assets	95,900		67,250
Land	25,000		10,000
Equipment	42,000		38,500
Less: Accumulated Depreciation	(14,000)		(7,000)
	53,000		41,500
Total Assets	148,900		108,750
Liabilities:
Accounts Payable	17,500		22,500
Accrued Salaries Payable	5,500		8,000
Rent Expense Payable	2,200		1,000
Income Tax Payable	6,900		4,000
Current Liabilities	32,100		35,500
Long-term notes payable	50,000		30,000
Total Liabilities	82,100		65,500
Stockholders Equity:
Common Stock	42,000		30,000
Retained Earnings	24,800		13,250
Total Liabilities & Stockholders Equity	$148,900		$108,750
Devin E Corporation
Income Statement
For the Year Ended December 31, 2015
	2015
Revenues	$147,000
Cost of Goods Sold	84,000
Gross Profit	63,000
Operating Expenses
Depreciation Expense	7,000
Salary Expense	14,600
Insurance Expense	2,500
Rent Expense	10,000
Interest Expense	4,200
Total Operating Expenses	38,300
Income from Operations	24,700
Income Tax Expense	6,900
Net Income	$17,800
Devin E Corporation (the “Company”) manufactures food processing equipment. Use Devin Corporation’s 2015 and 2014 balance sheets and 2015 income statement shown below to prepare a statement of cash flows for 2015. Note that the Company paid dividends of $6,250 during 2015.

Please fill in the balance sheet as well as create a statement of cash flow sheet

Devin E Corporation
Balance Sheet
31-Dec
Worksheet for Cash Flow
	2015	2014	Change		Cash	Operating	Investing	Financing
Cash and Cash Equivalents
Accounts Receivable
Inventory
Land
Equipment
Accumulated Depreciation
Accounts Payable
Accrued Salaries Payable
Rent Expense Payable
Income Tax Payable
Long-term Note Payable
Common Stock
Retained Earnings

	Devin E Corporation
	Statement of Cash Flows
	For the Year Ended December 31, 2015

Answer 1

DEVIN E CORPORATION
BALANCE SHEET
31ST DECEMBER
		AMOUNTS
CASH FLOW STATEMENTS		IN $
CASH FLOW FROM OPERATING ACTIVITY
NET INCOME		17800
DEPRECIATION OF FIXED ASSETS		7000
INCREASE IN A/C RECEIVABLE		-17750
DECREASE IN INVENTORY		6000
DECREASE IN ACCOUNT PAYABLE		-5000
DECREASE IN ACCRUED SALARY PAYABLE		-2500
INCREASE IN RENT EXPENSE PAYABLE		1200
INCREASE IN INCOME TAX PAYABLE		2900
		9650
CASH FOR INVESTING ACTIVITY
PURCHASE OF LAND		-15000
PURCHASE OF EQUIPMENT		-3500
		-18500
CASH FOR FINANCING ACTIVITY
ISSUE OF COMMON STOCK		12000
DIVIDEND		-6250
LONG TERM NOTES ISSUED		20000
		25750
NET CASH		16900
ADD:OPENING CASH		25000
CLOSING CASH		41900
BALANCE SHEET
31ST DEC
WORKSHEET FOR CASH FLOW		AMOUNTS IN $
		2015	2014	CHANGE	CASH	OPERATING	INVESTING	FINANCING
CASH AND CASH EQUIVALENTS		41900	25000	-16900	16900
ACCOUNTS RECEIVABLE		24000	6250	-17750		-17750
INVENTORY		30000	36000	6000		6000
LAND		25000	10000	-15000			-15000
EQUIPMENT		42000	38500	-3500			-3500
ACCUMALATED DEPRECIATION		-14000	-7000	7000		7000
		148900	108750	-40150
ACCOUNTS PAYABLE		17500	22500	5000		-5000
ACCRUED SALARIES PAYABLE		5500	8000	2500		-2500
RENT EXPENSE PAYABLE		2200	1000	-1200		1200
INCOME TAX PAYABLE		6900	4000	-2900		2900
LONG TERM NOTE PAYABLE		50000	30000	-20000				20000
COMMON STOCK		42000	30000	-12000				12000
RETAINED EARNING		24800	13250	-11550		17800		-6250
		148900	108750	-40150	16900	9650	-18500	25750