Net Cash prov by Opposite Act $99,000 The income statement of Supplements Plus,I

Question

Net Cash prov by Opposite Act $99,000

The income statement of Supplements Plus,Inc follows:

                Supplements Plus Inc
                   Income Statement
                 Year Ended September 30, 2016
Sales Revenue.                            $234,000
Cost of Goods Sold.                        91,000
Gross profit.                                    143,000
Operating Expenses:
Salaries Expense.           55,000
Depreciation Expense-
Plant Assets.                    25,000
Total Operating Expenses.              80,000
Net Income Before Income Taxes.63000
Income Tax Expense.                        10000
Net Income.                                         53000

Additional data follow:
a. Acquisition of plant assets is $121,000 .Of this amount, $104,000 is paid in cash and $17,000 by signing a note payable.
b.Cash receipt from sale of land totsps $26,000.There was no gain or loss.
c. Cash receipts from issuance of common stock total $30,000.
d.Payment of notes payable is $16,000.
e. Payment of dividends is $9,000
f. From the balance sheet.
  
                                       September 30
                                    2016.         2015
Cash.                        38,000.        12,000
Accounts.                44,000.         60,000
Receivable
Merchandise.          91,000.         86,000
Inventory
Plant Assets.            201,000.      80,000
Acc Depreciation.     35,000.        10,000
Land.                            75,000.       101,000
Accounts.                   31,000.         15,000
Payable
Accrued Liabilities.    20,000.        26,000
Notes Payable.            17,000.        16,000
(long term)
Common Stock no par 37,000.      7,000
Retained Earnings.       309,000.   265,000

Prepare Supplements Plus Statement of cash flows for the year ended September 30 2016,using the indirect method. Include a separate section for non cash investing and financing activities.

Explanation / Answer

Answer:

Supplements Plus inc Statement of cash flow Cash Flow from oprating activities: Net income 53000 Adjustments: Depreciation exp 25000 Dec in Accounts receivable 16000 Inc in merchandise inventory -5000 Inc in accounts payable 16000 Dec in Accrued liabilities -6000 Net Cash Provided from oprating activities 99000 Cash flow from investing activities: Sale of land 26000 Purchase of plant assets -104000 Net Cash used from investing activities -78000 Cash Flow from financing activities: Issue of common stock 30000 Dividend paid -9000 Payment of notes payable -16000 Net Cash Provided from financing activities 5000 Cash Flow from all activities 26000 opening cash 12000 Closing cash 38000

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