I need Help with the last 4, can someone help me and explain it to me please!! V

Question

I need Help with the last 4, can someone help me and explain it to me please!!

Visual Inspection

Gordon Company's accounting records provided the following changes in account balances and other information for 2013: Net Changes for 2013 Debit Credit Cash $1,100, Accounts Receivable $1,300, Inventory 1,500, Buildings and Equipment 9,000, Accumulated Depreciation 2,800, Accounts Payable 700, Common Stock, no par 5,300, Retained Earnings 2,900. Additional information: Net income totaled $6,000. Dividends were declared and paid. Equipment was purchased for $9,000. No buildings and equipment were sold during the year. One hundred shares of common stock were sold for $53 per share. The ending cash balance was $4,900.

Required: Hide Using visual inspection, prepare a 2013 statement of cash flows for Gordon. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.

GORDON COMPANY

Statement of Cash Flows

For Year Ended December 31, 2013

Operating Activities: Net income $6,000

Adjustment for noncash income items: Add: Depreciation expense 2,800

Adjustments for cash flow effects from working capital items: Decrease in account receivable 1,300

                                                                                         Increase in inventory                -1,500

                                                                                         Decrease in Account payable    -700

Net cash provided by operating activities: $ 7,900

Investing Activities: Payment for purchase of equipment $ -9,000

Net cash used for investing activities -9,000

Financing Activities: Proceeds from issuance of common stock : $ 5,300

                              Payments of Dividens :                          

Net cash provided by financing activities:    $

Net increase in cash : $

Cash, January 1, 2013 Cash,

December 31, 2013 $ 4,900

Explanation / Answer

Cash flows from operating activities Net income $6,000 Adjustments for: Depreciation and amortization $2,800 decrease in accounts receivables 1,300 increase in inventories -1,500 Decrease in accounts payables -700 1,900 Cash generated from operations 7,900 Cash flows from investing activities Payment for purchase of equipment -9,000 Net cash used in investing activities -9,000 Cash flows from financing activities Proceeds from issue of common stock 5,300 Dividends paid - Net cash used in financing activities 5,300 Net increase in cash and cash equivalents 2,300 Cash and cash equivalents at beginning of period 2,600 Cash and cash equivalents at end of period $4,900 Note: for Dividend declared rate of dividend payment is not given hence taken as 0

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