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Question 33 (2u points) The balance sheets for Matile Company showed the followi

ID: 2486733 • Letter: Q

Question

Question 33 (2u points) The balance sheets for Matile Company showed the following information. Additional information concerning transactions and events during 2012 are presented below. Matile Company Balance Sheet December 31 2011 S.35.900S 10,200 201 Cash Accounts receivable (net) Inventory Long-term investments Property, plant & equipment Accumulated depreciation 48,300 35.000 20.300 42.000 15,000 150,000 (37.700) 25,000) 236,500 5318,000$212,500 Accounts payable Accrued liabilities S 19,000S 26,500 Long-term notes payable Common stock Retained earnings 17,000 50,000 90,000 29,000 $318.000 $212.500 19,000 70,000 130,000 80,000 ne Additional data: 2012 490 000

Explanation / Answer

Cash flow statement using indirect method

Cash flow from operating activities:

Net income                                                                                                     90000

Add:

Non cash expense

Less:

Cash flow from investing activities:

Sale of long term investments                                                                      33000

Purchase of machinery                                                                                    (26500)

Cash flow from financing activities:

Dividend paid                                                                                                  (39000)

Net increase in cash                                                                                       25700

Opening cash                                                                                                    10200

Closing cash balance                                                                                       35900

W N : 1

Opening investments                                                                 15000

Sale of investments                                                                     33000

Profit on sale                                                                                   18000 (33000-15000)

  

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