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D Homework Chapter 3 x C Not secure ezto.mheducation.com/hm.tpx D Homework Chapter 3 (--) ? 0 Not secure ezto.mheducation.com/hm.tpx 2014 and 2015 Balance Sheets Assets Liabilities and Owners' Equity 2014 2014 2015 2015 Current assets Current liabilities 24,584 28,500 Cash Accounts receivable Inventory $ 23,086 25,500 16,600 28,500 13,848 27,362 Accounts payable Notes payable Other 15.000 12,971 12,200 18,300 $52,555 59,000 $55,000 61,000 Common stock and paid-in surplus 52,000 52,000 Total $64,296 70,600 Total Long-term debt 243.436 $295,436 $402,991 263,000 5,000 $435,000 retained Fixed assets Net plant and equipment $338,695 $364,400 Total Total assets $402,991 $435,000 Total liabilities and owners' equity SMOLIRA GOLF CORP 2015 Income Statement Salos Cost of goods sold Depreciation $359,607 235,900 35,400 Eamings before interest and taxes Interest paid S 88,307 15,700 Taxable income Taxes (40%) 72,607 29,043 Net income S 43,564 $24,000 19,564 Retained earnings SMOLIRA GOLF CORP Statement of Cash Flows For 2015 Cash, beginning of the year 23086 Net income Click to select) Click to select) Click to select) Click to select) Click to select) Net cash from operating activities Investment activities Click to soloct) Net cash from investment activities Financing activities Click to select) Click to select) Click to select) Net cash from financing activities

Explanation / Answer

SMOLIRA GOLF CORP

Statement of Cash Flows

For 2015

Cash Beginning of the year

23,086

Operating Activities

Net Income

43,564

Add: Depreciation

35,400

Add: Increase in accounts payable

3,916

Add: Increase in other current liabilities

5,329

Less: Increase in inventory

-1,138

Less: Increase in accounts receivable

-2,752

Net cash from operating activities

84,319

Investment activities

Fixed asset acquisition*

-61,105

Net cash from investment activities

-61,105

Financing activities

Decrease in notes payable

-2,800

Increase in long-term debt

6,000

Dividends paid

-24,000

Net cash from financing activities

-20,800

Net increase in cash

2,414

Cash, end of year

25,500

SMOLIRA GOLF CORP

Statement of Cash Flows

For 2015

Cash Beginning of the year

23,086

Operating Activities

Net Income

43,564

Add: Depreciation

35,400

Add: Increase in accounts payable

3,916

Add: Increase in other current liabilities

5,329

Less: Increase in inventory

-1,138

Less: Increase in accounts receivable

-2,752

Net cash from operating activities

84,319

Investment activities

Fixed asset acquisition*

-61,105

Net cash from investment activities

-61,105

Financing activities

Decrease in notes payable

-2,800

Increase in long-term debt

6,000

Dividends paid

-24,000

Net cash from financing activities

-20,800

Net increase in cash

2,414

Cash, end of year

25,500