MARY JANE COMPANY Comparative Balance Sheets December 31 Assets 2014 2013 Cash $
ID: 2451914 • Letter: M
Question
MARY JANE COMPANY Comparative Balance Sheets December 31 Assets 2014 2013 Cash $72,710 $22,001 Accounts receivable 85,652 76,161 Inventories 169,800 188,601 Land 75,070 100,300 Equipment 259,540 200,580 Accumulated depreciation (65,861) (32,198) Total $596,911 $555,445 Liabilities and Stockholders' Equity Accounts payable $39,209 $46,636 Bonds payable 151,530 203,230 Common stock ($1 par) 214,140 175,750 Retained earnings 192,032 129,829 Total $596,911 $555,445
Additional information:
Net income for 2014 was $101,690, depreciation was $33,663.
Cash dividends of $39,487 were declared and paid.
Bonds payable amounting to $51,700 were redeemed for cash $51,700.
Common stock was issued for $38,390 cash.
Land was sold for $25,230 cash, there was no loss.
Equipment was purchased for $58,960 cash.
Instructions Prepare a statement of cash flows for 2014 using the indirect method. Use the template provided on the next page.
Explanation / Answer
cash flow from operating activity net Income 101690 Add :Depreciation 33663 change in current asset/liabilities Increase in receivable (85652-76161) (9491) Decrease in inventory (188601-169800) 18801 Decrease in payables (46636 -39209) (7427) cash flow from operating activity (A) 137236 cash flow from investing activity Sale of land 25230 Purchase of equipment (58960) cash flow from investing activity (B_ (33730) cash flow from financing activity issue of stock 38390 redemption of bond (51700) Dividend paid (39487) cash flow from financing activity (C) (52797) Net increase/(decrease) in cash flow (A+B+C) 50709 Add:Beginning cash flow 22001 Cash flow at end 72710
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