Question

Selected financial statement information and additional data for Stanislaus Co. is presented below. Prepare a statement of cash flows for the year ending December 31, 2017.

                                                                                                December 31

                                                                                    2016                            2017

Cash......................................................... $42,000                       $60,000

Accounts receivable (net)........................     84,000                       144,200

Inventory.................................................. 168,000                       206,600

Land.........................................................     58,800                         26,000

Equipment................................................ 504,000                       789,600

TOTAL......................................... $856,800                  $1,226,400

Accumulated depreciation....................... $84,000                     $110,600

Accounts payable....................................     50,400                         91,000

Notes payable - short-term......................     67,200                         29,400

Notes payable - long-term....................... 168,000                       302,400

Common stock........................................ 420,000                       487,200

Retained earnings....................................     67,200                       205,800

TOTAL......................................... $856,800                  $1,226,400

Additional data for 2017:

1.    Net income was $230,200.
2.    Depreciation was $26,600.
3.    Land was sold at its original cost.
4.    Dividends of $91,600 were paid.
5.    Equipment was purchased for $84,000 cash.
6.    A long-term note for $201,600 was used to pay for an equipment purchase.
7.    Common stock was issued to pay a $67,200 long-term note payable.

Answer 1

Answer-

STANISLAUS CO.
STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)
FOR THE YEAR ENDED 31 DECEMBER, 2017
Particulars		Amount
		$
Cash flow from operating activities
Net Income		230200
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation		26600
Change in operating assets & liabilities
Increase in accounts receivable		-60200
Incresae in inventory		-38600
Increase in accounts payable		40600
Net cash flow from operating activities (a)		198600
Cash Flow from Investing activities
New equipment purchased		-84000
Land sold		32800
Net cash Flow from Investing activities (b)		-51200
Cash Flow from Financing activities
Cash dividends paid		-91600
Short-term notes payable paid		-37800
Net cash Flow from Financing activities (c)		-129400
Net Change in cash c=a+b+c		18000
Beginning cash balance		42000
Closing cash balance		60000
Schedule of non cash investing & financing activities
Acquisition of equipment by issuing long-term note payable	$201600
Common stock issued to pay long-term note payable		$67200