CES Accounting, Analysis, and Principles The income statement for the year ended
ID: 2329833 • Letter: C
Question
CES Accounting, Analysis, and Principles The income statement for the year ended December 31, 2017, for Flint Manufacturing Company contains the following condensed information. FLINT CO INCOME STATEMENT $6,583,000 Revenues Operating expenses (excluding depreciation) Depreciation expense Income before income tax $4,920,000 870,000 5,790,000 793,000 356,850 436,150 udy Income tax expense Net income Included in operating expenses is a $31,000 loss resulting from the sale of machinery for $270,000 cash. The company purchased machinery at a cost of $740,000. Flint reports the following balances on its comparative balance sheets at December 31. FLINT CO. COMPARATIVE BALANCE SHEETS (PARTIAL) 2017 2016 Cash Accounts receivable Inventony Accounts payable $663,150 $130,000 785 ,000 610,000 834,000 871,000 525,000511,000 Income tax expense of $356,850 represents the amount paid in 2017. Dividends declared and paid in 2017 totaled $210,000.Explanation / Answer
Answer:
Flint company
Statement of cash flow
Cash flow from operating activities
Net income
436150
Adjustments to reconcile net income to net cash
provided by operating activities
depreciation expense
870,000
Loss on sale of property
31000
Increase in accounts receivable(610,000-785000)
-175000
decrease in inventory (871000-834000)
37000
Increase in accounts Payable(25000-11000)
14000
777,000
Net cash provided by operating activities
1,213,150
Cash flows from investing activities
Sale of property
270,000
Purchase of Machinery
-740,000
Net cash used by investing activities
-470,000
Cash flows from financing activities
Payment of dividends
-210000
Cash flows from financing activities
-210000
Net increase in cash
533,150
Cash at beginning of year
130,000
Cash at End of year
663,150
2
Free cash flow
Net cash provided by operating activities
1,213,150
Less:
capital Expenditure
-740,000
Dividend
-210000
Free cash flow
263,150
Free cash flow
263,150
Flint company
Statement of cash flow
Cash flow from operating activities
Net income
436150
Adjustments to reconcile net income to net cash
provided by operating activities
depreciation expense
870,000
Loss on sale of property
31000
Increase in accounts receivable(610,000-785000)
-175000
decrease in inventory (871000-834000)
37000
Increase in accounts Payable(25000-11000)
14000
777,000
Net cash provided by operating activities
1,213,150
Cash flows from investing activities
Sale of property
270,000
Purchase of Machinery
-740,000
Net cash used by investing activities
-470,000
Cash flows from financing activities
Payment of dividends
-210000
Cash flows from financing activities
-210000
Net increase in cash
533,150
Cash at beginning of year
130,000
Cash at End of year
663,150
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