Exercise 13-12 (Direct Method) The comparative unclassified statement of financi
ID: 2398170 • Letter: E
Question
Exercise 13-12 (Direct Method) The comparative unclassified statement of financial position for Puffy Ltd. follows: PUFFY LTD Statement of Financial Position December 31 2015 Assets Cash Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets 2014 $54,020 $24,720 75,720 183,310 187,420 69,620 102,340 264,900 198,090 (66,970) (31,400) $586,200 $556,890 81,320 Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earning:s Total liabilities and shareholders' equity $38,110 $45,700 149,200204,310 197,040 174,440 201,850132,440 $586,200 $556,890Explanation / Answer
Cash flow from Operating Activities :-
Cash collect from customers
(979030{sales} – 5600{increase a/c receivable}
973430
Cash Paid to supplier
(750330{COGS} + 7590{decrease a/c payable – 4110{decrease inventory}
-753810
Cash paid for Operating Exp
-42930
Cash paid for Interest Exp
-13650
Cash paid for Income Tax
-25880
Cash flow from Operating Activities (A)
137160
137160
Cash flow from Investing Activities :-
Land Sold
(32720 + 5460{gain on land sold}
38180
Equipment Purchase
-66810
Cash flow from Investing Activities (B)
-28630
-28630
Cash flow from Financing Activities :-
Bank Loan Repaid
-55110
Common shares issued
22600
Dividend Paid
(132440 {beginning retained earnings + 116130{Profit} – 201850 {ending balance of retained earnings)
-46720
Cash flow from Financing Activities (C)
-79230
-79230
Net Cash Inflow/Outflow (A+B+C)
29300
(+) Beginning cash Balance
24720
Ending Cash Balance
54020
Cash flow from Operating Activities :-
Cash collect from customers
(979030{sales} – 5600{increase a/c receivable}
973430
Cash Paid to supplier
(750330{COGS} + 7590{decrease a/c payable – 4110{decrease inventory}
-753810
Cash paid for Operating Exp
-42930
Cash paid for Interest Exp
-13650
Cash paid for Income Tax
-25880
Cash flow from Operating Activities (A)
137160
137160
Cash flow from Investing Activities :-
Land Sold
(32720 + 5460{gain on land sold}
38180
Equipment Purchase
-66810
Cash flow from Investing Activities (B)
-28630
-28630
Cash flow from Financing Activities :-
Bank Loan Repaid
-55110
Common shares issued
22600
Dividend Paid
(132440 {beginning retained earnings + 116130{Profit} – 201850 {ending balance of retained earnings)
-46720
Cash flow from Financing Activities (C)
-79230
-79230
Net Cash Inflow/Outflow (A+B+C)
29300
(+) Beginning cash Balance
24720
Ending Cash Balance
54020
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