Additional information for the 2016 fiscal year ($ in thousands.) 1- Cash divide
ID: 2499360 • Letter: A
Question
Additional information for the 2016 fiscal year ($ in thousands.)
1- Cash dividends of $2,700 were declard and paid
2- Equipment costing $7,400 was purchased with cash.
3- Equipment with a book value of $2,200 (cost of $4,900 less accumulated depreciation of $2,700) was sold for $2,200
4- Depreciation of $3,300 is included in operating expenses.
Prepare Santana Industries' 2016 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
Required:Prepare Santana Industries' 2016 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2016 (S in thousands) $ 17,650 6,800 Sales revenue Service revenue $24,450 Total revenue Operating expenses 8,900 4,100 3,200 Cost of goods sold Selling General and administrative Total operating expenses 16,200 Operating income Interest expense 8,250 370 Income before income taxes Income tax expense 7.880 4,200 Net income $ 3,680Explanation / Answer
Cash Flow Statement of Santana Industries for the year ended December 31, 2016
Indirect Method
Cash flows from operating activities $ $ Income before income taxes 7,880 Add depreciation 3,300 Add interest expense 370 3,670 Operating profit before adjustments for changes in working capital 11,550 Less increase in accounts receivable (2,000) Less increase in inventory (2,700) Add decrease in prepaid rent 320 Add increase in accounts payable 2,000 Add increase in deferred service revenue 370 (2,010) Cash from operations before income tax 9,540 Income taxes paid 4,620 Net cash flows from operating activities 4,920 Cash flows from investing activities Purchase of equipments (7,400) Sale of equipment 2,200 Net cash used in investing activities (5,200) Cash flows from financing activities Loans raised 8,400 Dividends paid (2,700) Interest paid (100) Net cash flows fron financing activities 5,600 Net increase in cash and cash equivalents 5,320 Beginning cash balance 3,730 Ending cash balance 9,050Related Questions
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