2015 2014 $ 315,360 $ 165,240 160,920 126,360 162,000 194,400 19,440 29,160 1,37
ID: 2455640 • Letter: 2
Question
2015
2014
$ 315,360
$ 165,240
160,920
126,360
162,000
194,400
19,440
29,160
1,377,000
1,134,000
165,240
187,920
$1,713,960
$1,432,080
$ 165,240
$ 181,440
64,800
45,360
?
486,000
567,000
?
129,600
?
648,000
648,000
139,320
71,280
$1,713,960
$1,432,080
From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2015.
From the information above, prepare a schedule of cash provided by operating activities using the direct method.
2015
2014
Cash$ 315,360
$ 165,240
Accounts receivable160,920
126,360
Inventory162,000
194,400
Prepaid expenses19,440
29,160
Plant assets1,377,000
1,134,000
Accumulated depreciation (486,000) (405,000) Patents165,240
187,920
$1,713,960
$1,432,080
Accounts payable$ 165,240
$ 181,440
Accrued liabilities64,800
45,360
Martgage payable?
486,000
Preferred stock567,000
?
Additional paid-in capital-preferred129,600
?
Common stock648,000
648,000
Retained earnings139,320
71,280
$1,713,960
$1,432,080
1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of $159,840 and credited for the net income for the year. The income statement for 2015 is as follows: Sales revenue $2,138,400 Cost of sales 1,176,120 Gross profit 962,280 Operating expenses 734,400 Net income $ 227,880Explanation / Answer
Cash Flow of Hartman Inc for the Year ended December,31,2015
Cash Flow from Operating Activities
Net Income
$227880
Adjustments for:
Depreciation
$81000
Increase in trade receivables
-34560
Decrease in Inventories
32400
Decrease in Accounts Payables
-16200
Decrease in Prepaid Expenses
9720
Increase in Accrued Liabilities
19440
Dividend Paid
-159840
-68040
Cash Generated from Operations
159840
Cash Flows from Investing Activities
Purchase of Fixed Assets
-243000
Sale of Patents
22680
Net Cash used in Investing Activities
-220320
Cash Flows from Financing Activities
Proceeds from Issue of Additional Capital Preferred
129600
Proceeds from Issue of Preferred Stock
567000
Proceeds from Issue of Long Term Debt
-486000
210600
Net Increase in Cash and Cash Equivalents
150120
Cash and Cash Equivalents at the Beginning of period
165240
Cash and Cash Equivalents at the end of period
315360
Cash Flow from Operating Activities
Net Income
$227880
Adjustments for:
Depreciation
$81000
Increase in trade receivables
-34560
Decrease in Inventories
32400
Decrease in Accounts Payables
-16200
Decrease in Prepaid Expenses
9720
Increase in Accrued Liabilities
19440
Dividend Paid
-159840
-68040
Cash Generated from Operations
159840
Cash Flows from Investing Activities
Purchase of Fixed Assets
-243000
Sale of Patents
22680
Net Cash used in Investing Activities
-220320
Cash Flows from Financing Activities
Proceeds from Issue of Additional Capital Preferred
129600
Proceeds from Issue of Preferred Stock
567000
Proceeds from Issue of Long Term Debt
-486000
210600
Net Increase in Cash and Cash Equivalents
150120
Cash and Cash Equivalents at the Beginning of period
165240
Cash and Cash Equivalents at the end of period
315360
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