Using the following information, Create a Statement of Cash Flows More informati

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Using the following information, Create a Statement of Cash Flows

More information for the Statement of Cash Flows:

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Purchase of Plant Assets $2,709,500 Purchase of Patent $700,000 Proceeds from New Short-Term Notes $500,000 Repayment of Short-Term Notes $1,400,000 Repayment of Long-Term Debt Principal $750,000 Balance Sheet 2017 2016 2017 2016 Assets Current Assets Cash Cash Equivalents Accounts Receivables ities Current Li 323,400 Short Term Notes Payable 192,000 Accunts Payable 454,000 800,000 1,700,000 240,000 2,833,450 4,154 52,000 12,000 124,700 98,600 4,164,700 4,010,600 Income tax Payable 3,787,100 Interest Payable Interest Reciva Office Supplies Prepaid Advert Pr 700 13,700 Sales Commissions Payable 25,000 Unearned Sales Revenue 14,400 Unearned Rent Revenue 10,000 153,300 131,400 32,000 36,500 996,650 Salaries Payable 22,600 150,000 16,900 Insurance 8,673,280 8,366,900 6,141,600 Term Liablities Investments 345,300 330,300 Longterm debt 7,500,000 8,250,000 Plant & Equipment Land 1,754,000 1,685,500 14,860,000 12,790,000 Stockholder's E 4,447,0003,876,000 Common Stock 6,104,500 4,829,500 Additional Paid In Build 2,500 5,500 6,872,1301,936,300 76,300 2,500,0 5,500,0 Less: Accumulated Property Plant & Equipment (Net) 14,956,500 13,522,000 Retained Earning Accumulated Other rehensive Income ible Assets Patents 900,000 14,948,430 9,997,600 Goodwill 270,000 26,445 ,080 24,389,200 26,445 14,391,600 Statement of Equity (Common Stock is $2.50 Par Value) Additional Paid In Retained Common Stock $2.50 par Income 2,500,000.00 5,500,000.00 1,936,300.00 935,830.00 Balance 61,300.00 Add: Net Income Less: Dividends Paid Add: Other Comprehensive Income 15,000.00 76,300.00 2,500,000.00 5,500,000.00 6,872,130.00

Explanation / Answer

Statement of Cash Flows Cash flows from operating activities Net Income $6,935,830.00 Adjustments for: Depreciation(Wn-1) $1,675,000.00 Working capital changes: (Increase) / Decrease in Accounts receivables(4010600-4164700) ($154,100.00) (Increase) / Decrease in Interest receivables(700-1080) ($380.00) (Increase) / Decrease in Office Supplies,Prepaid Advertising and Insurance(14400+13700+25000-22600-16900-150000) ($136,400.00) (Increase) / (Decrease) in inventories(3787100-3624000) $163,100.00 Increase / (Decrease) in Accounts payables(2833450-4154300) ($1,320,850.00) Increase / (Decrease) in Interest payables ($2,000.00) Increase / (Decrease) in Salary payables(153300-124700) $28,600.00 Increase / (Decrease) in Sales Commission payables $32,800.00 Increase / (Decrease) in Unearned Sales and Rent Revenue(32000+36500) $68,500.00 Cash generated from operations(Total of All Above) $7,290,100.00 Income taxes paid ($52,000.00) Dividends paid ($2,000,000.00) Net cash from operating activities $5,238,100.00 Cash flows from investing activities Purchase of Plant Assets ($2,709,500.00) Purchase of Patents ($700,000.00) Acquisition of investments ($15,000.00) Net cash used in investing activities ($3,424,500.00) Cash flows from financing activities Issue of Short term Notes $500,000.00 Proceeds from long-term debt capital ($750,000.00) Increase in other Comprehensive Income $15,000.00 Repayment of Short Term Notes ($1,400,000.00) Net cash used in financing activities ($1,635,000.00) Net increase in cash and cash equivalents $178,600.00 Cash and cash equivalents at beginning of period $515,400.00 Cash and cash equivalents at end of period $694,000.00 WN-1- Depreciation Accumulated Depreciation difference $1,275,000.00 Patents Depreciation(900000+700000 purchase -1200000) $400,000.00 $1,675,000.00

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