The following additional information was taken from the records of Juras equipme

Question

 

The following additional information was taken from the records of Juras equipment:

 

Instructions:

Prepare a statement of cash flows, using the indirect method of presenting cash flows

 from operating activities.

 

 

My   Answer:

 

 

Please help on this (below i'm stuck here)

Operating activities:

Instructions:

Prepare a statement of cash flows, using the indirect method of presenting cash flows

 from operating activities.

The following additional information was taken from the records of Juras equipment: a. Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $129,600 cash. The common stock was issued for cash. There was a $228,960 credit to Retained Earnings for net income. There was a $144,000 debit to Retained Earnings for cash dividends declared. Instructions: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. My Answer: Cash flows from operating activities: Net income $228,960 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 20,880 Loss on inventory write down and fixed assets Loss on sale of investments 14,400 Changes in current operating assets and liabilities: Increase in accounts receivable (26,880) Increase in inventories (12,240) Increase in accounts payable 16,320 Increase in accrued expenses payable 5,280 Net cash flow from operating activities $246,720 Cash flows from investing activities: Cash received from sale of investments $129,600 Less cash paid for purchase of land (417,600) Less cash paid for purchase of equipment (113,760) Net cash flow used for investing activities (401,760) Cash flows from financing activities: Cash received from sale of common stock $324,000 Less cash paid for dividends (136,800) Net cash flow provided by financing activities 187,200 Increase in cash $32,160 Cash at the beginning of the year 67,680 Cash at the end of the year $99,840 Balance, Transactions Balance, Dec. 31, 2012 Debit Credit Dec. 31, 2013 Cash 67,680 O 32,160 99,840 Accounts receivable (net) 265,680 n 26,880 292,560 Inventories 409,200 12,240 421,440 Investments 144,000 144,000 - Land - 417,600 417,600 Equipment 505,440 113,760 619,200 Accum. depr. - equipment (119,040) 20,880 (139,920) Accounts payable (274,080) 16,320 (290,400) Accrued expenses payable (37,920) 5,280 (43,200) Dividends payable (28,800) 7,200 (36,000) Common stock, $1 par (144,000) 18,000 (162,000) Paid-in capital in excess of par (288,000) 306,000 (594,000) Retained earnings (500,160) 84,960 (585,120) Totals - 602,640 602,640 - Please help on this (below i'm stuck here) Operating activities: Net income 84,960 Depreciation 20,880 Loss on sale of investments 14,440 Increase in accounts receivable 26,880 Increase in inventories 12,240 Increase in accounts payable 16,320 Increase in accrued expenses payable 5,280 Investing activities: Purchase of equipment 113,760 Purchase of land 417,600 Sale of investments 129,000 Financing activities: Declaration of cash dividends 144,000 Sale of common stock 18,000 Increase in dividends payable 7,200 Net increase in cash 31,160 Totals

Explanation / Answer

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