Hunter Company is developing its annual financial statements at December 31. The

Question

Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment $ 44,880 19,800 22,800 102,200 14,000 21,000 28,000 94,000 (33,800) (26,000) $155,880 $131,000 18,000 1,000 40,000 52,000 20,000 $131,000 Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 20,200 880 28,000 76,000 30,800 $155,880 Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income $118,000 70,000 34,200 13,800 Additional Data a. Bought equipment for cash, $8,200 b. Paid $12,000 on the long-term note payable c. Issued new shares of stock for $24,000 cash. d. Declared and paid a $3,000 cash dividend e. Other expenses included depreciation, $7,800; salaries and wages, $11,800; taxes, $4,800; utilities, $9,800 f Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash

Explanation / Answer

Cash flows from operating activities: Net income 13800 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 7800 Changes in current assets and current liabilities: Increase in accounts payable 2200 Decrease in accounts receivable 1200 Decrease in salaries and wages payable -120 Decrease in inventory 5200 16280 Net cash provided by operating activities 30080 Cash flows from investing activities: Cash payments to purchase equipment -8200 Net cash (used by) investing activities -8200 Cash flows from financing activities: Cash payments on long-term note -12000 Cash receipts from issuing stock 24000 Dividends paid -3000 Net cash provided by financing activities 9000 Net increase in cash during the year 30880 Cash balance, January 1 14000 Cash balance, December 31 44880

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.