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P/s help me to answer this question. YANIK COMPANY Comparative Balance Sheets De

ID: 2497443 • Letter: P

Question

P/s help me to answer this question.

YANIK COMPANY
Comparative Balance Sheets
December 31

Assets

2014

2013

$ 100,028

$ 66,195

73,550

85,318

222,783

208,882

22,477

30,891

213,295

191,230

294,200

294,200

(88,260

)

(58,840

)

330,975

228,005

(66,195

)

(51,485

)

$1,102,853

$994,396

Liabilities and Stockholders’ Equity

$ 65,798

$ 52,956

441,300

441,300

294,200

235,360

301,555

264,780

$1,102,853

$994,396


Additional information:


Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method

YANIK COMPANY
Comparative Balance Sheets
December 31

Assets

2014

2013

Cash

$ 100,028

$ 66,195

Accounts receivable

73,550

85,318

Inventory

222,783

208,882

Prepaid expenses

22,477

30,891

Land

213,295

191,230

Buildings

294,200

294,200

Accumulated depreciation—buildings

(88,260

)

(58,840

)

Equipment

330,975

228,005

Accumulated depreciation—equipment

(66,195

)

(51,485

)

Total

$1,102,853

$994,396

Liabilities and Stockholders’ Equity

Accounts payable

$ 65,798

$ 52,956

Bonds payable

441,300

441,300

Common stock, $1 par

294,200

235,360

Retained earnings

301,555

264,780

Total

$1,102,853

$994,396

Explanation / Answer

Answer:

YANIK COMPANY Statement of cash flow For the year Ended December 31,2014 Particulars Amount Cash flow from operating activities: Net income 54427 Adjustment to be reconcile net income to net cash provided by operating activities: Depreciation expense 61782 Loss on sale of equipment 2942 Decrease in accounts receivable 11768 Increase in merchandise inventory -13901 Decrease in Prepaid expenses 8414 Increase in accounts payable 12842 Net cash flow from operating activities 138274 Cash flow from investing activities: Purchase of equipment -135332 Sale of equipment 11768 Net cash flow from investing activities -123564 Cash flow from financing Activities: Cash Dividend paid -17652 Change in retained earnings 36775 Net cash flow from financing activities 19123 Net Increase in cash 33833 Cash at beginning of year 66195 Cash at end of year 100028