need help please Selected financial statement information and additional data fo
ID: 2472294 • Letter: N
Question
need help please
Selected financial statement information and additional data for ABC Co. is presented below. Prepare a statement of cash flows for the year ending December 31, 2016 December 31
2015 2016
Cash $40,000 $ ?
Accounts receivable (net) 84,000 144,200
Inventory 168,000 201,600
Land 58,800 16,000
Equipment 504,000 789,600
TOTAL $854,800 $1,224,400
Accumulated depreciation $84,000 $115,600
Accounts payable 50,400 86,000
Notes payable - Short-term 67,200 29,400
Notes payable - Long-term 168,000 302,400
Common stock 420,000 487,200
Retained earnings 65,200 203,800
TOTAL $854,800 $1,224,400
Additional data for 2016:
1. Net income was $240,200.
2. Depreciation was $31,600.
3. Land was sold at its original cost.
4. Dividends of $101,600 were paid.
5. Equipment was purchased for $84,000 cash.
6. A long-term note for $201,600 was used to pay for an equipment purchase.
7. Common stock was issued to pay a $67,200 long-term note payable.
Instructions:
(1)Net cash provided (used) by operating activities
(2)Net cash provided (used) by investing activities
(3)Net cash provided (used) by financing activities
(4)Changes in cash account
(5)Disclosure of noncash transactions
Explanation / Answer
Solution:
1 Cashflow from Operating Activities Net Income 240,200 Add: Depreciation 31,600 Less: Increase in accounts receivables - 60,200 Less: Increase in Inventory - 33,600 Add: Increase in accounts payable 35,600 Less: Decrease in Notes payable - Short term - 37,800 Cashflow from Operating Activities 175,800 2 Cashflow from Investing Activities Sale of Land 42,800 Purchase of Equipment - 84,000 3 Cashflow from Investing Activities - 41,200 Cashflow from Financing Activities Dividends Paid - 101,600 Cashflow from Financing Activities - 101,600 4 Changes In cash 33,000Related Questions
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