Question

Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Assets Liabilities and Owners’ Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 34,885 $ 38,296 Accounts payable $ 37,472 $ 42,832 Accounts receivable 18,051 28,216 Notes payable 19,508 16,575 Inventory 3,760 42,832 Other 20,314 25,034 Total $ 56,696 $ 109,344 Total $ 77,294 $ 84,441 Long-term debt $ 117,500 $ 180,650 Owners’ equity Common stock and paid-in surplus $ 55,500 $ 55,500 Accumulated retained earnings 271,182 309,136 Fixed assets Net plant and equipment $ 464,780 $ 520,383 Total $ 326,682 $ 364,636 Total assets $ 521,476 $ 629,727 Total liabilities and owners’ equity $ 521,476 $ 629,727 SMOLIRA GOLF CORP. 2018 Income Statement Sales $ 508,954 Cost of goods sold 361,078 Depreciation 45,088 Earnings before interest and taxes $ 102,788 Interest paid 20,183 Taxable income $ 82,605 Taxes (25%) 20,651 Net income $ 61,954 Dividends $ 24,000 Retained earnings 37,954 Prepare the 2018 statement of cash flows for Smolira Golf Corp. (Negative answers should be indicated by a minus sign.) Loading...

Answer 1

Purchase of Plant and Equipment = Ending Net Plant and Equipment + Depreciation - Beginning Plant and Equipment
Purchase of Plant and Equipment = $520,383 + $45,088 - $464,780
Purchase of Plant and Equipment = $100,691