ignment AM/ Remaining: 180 min ES Dec. 31, 2017 Dec. 31, 2016 Assets Cash Accoun

Question

ignment AM/ Remaining: 180 min ES Dec. 31, 2017 Dec. 31, 2016 Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Equipment Accumulated depreciation-equipment $34,000 18,000 25,000 6,000 $11,000 13,000 17,000 9,000 17,000 33,000 (15,000) $85,000 60,000 (20,000) $123,000 Total assets Liabilities and Stockholder's Equity Accounts payable Bonds payable Common stock Retained eanings $17,000 36,000 40,000 30,000 $123,000 $7,000 45,000 23,000 10,000 $85,000 Additional information: 1: Net income for the year ending December 31 2017 was $35.000. 2. Cash dividends of s15,000 were declared and paid during the year 3, Lona-term investments that had a cost of $17.000 were sold for $14,000. tudy 037p9 20180720,115025 jag201837204 115015J99h

Explanation / Answer

Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities: Net income 35000 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense 5000 Loss on Sale of investments 3000 Increase in Accounts receivables -5000 Increase in inventory -8000 Decrease in prepaid expenses 3000 Increase in accounts payable 10000 8000 Net cash provided by operating activities 43000 Cash Flows from Investing Activities: Purchase of Equipment -27000 Sale of Long term Investments 14000 Net Cash used by Investing Activities -13000 Cash Flows from Financing Activities Payment of Cash Dividends -15000 Redemption of Bonds Payable -9000 Issuance of Common Stock 17000 Net Cash Used by Financing Activities -7000 Net Increase in Cash 23000 Cash at Beginning of Period 11000 Cash at End of Period 34000

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