Problem 5-7 (Part Level Submission) Tamarisk Inc. had the following balance shee

Question

Problem 5-7 (Part Level Submission) Tamarisk Inc. had the following balance sheet at December 31, 2016. TAMARISK INC. BALANCE SHEET DECEMBER 31, 2016 25,480 Accounts payable 26,680 Bonds payable 32,000 Common stock 86,480 Retained earnings 45,480 S 35,480 46,480 105,480 28,680 $216,120 Cash Accounts receivable Plant assets (net) Land 216,120 During 2017, the following occurred. 1. Tamarisk liquidated its available-for-sale investment portfolio at a loss of $10,480. 2. A tract of land was purchased for $43,480. 3. An additional $30,000 in common stock was issued at par 4. Divdends totaling $15,480 were declared and paid to stockholders. 5. Net income for 2017 was $40,480, including $17,480 in depreciation expense. 6. Land was purchased through the issuance of $35,480 in additional bonds. 7. At December 31, 2017, Cash was $75,680, Accounts Receivable was $47,480, and Accounts Payable was $45,480. Your answer is correct. Prepare a statement of cash flows for the year 2017 for Tamarisk. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) TAMARISK INC Statement of Cash Flows or the Year Ended December 31, 20 Flows from Activities ncome 048 Adjustments to recondle net income to Flows f Activities

Explanation / Answer

Solution:

Tamarisk Inc. Balance Sheet 31-Dec-17 Particulars Amount Assets: Cash $75,680.00 Accounts receivables $47,480.00 Land ($45,480 + $43,480 + $35,480) $124,440.00 Plant Assets (net) ($86,480 - $17,480) $69,000.00 Total Assets $316,600.00 Liabilities and Stockholder's Equity: Accounts Payable $45,480.00 Bonds Payable ($46,480 + $35,480) $81,960.00 Common Stock ($105,480 + $30,000) $135,480.00 Retained Earnings ($28,680 + $40,480 - $15,480) $53,680.00 Total Liabilities and Stockholder's Equity: $316,600.00

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