Exercise 13-12 (Indirect Method) The comparative unclassified statement of finan

Question

Exercise 13-12 (Indirect Method) The comparative unclassified statement of financial position for Puffy Ltd. follows: PUFFY LTD. Statement of Financial Position December 31 Assets Cash Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets 2015 2014 $52,410 $21,480 70,220 186,020 191,030 69,250 101,720 267,020 204,640 75,870 65,240) (31,800) $585,330 $557,290 Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $585,330 $39,820 48,390 143,700 202,990 197,140 172,510 204,670 133,400 $557.290

Explanation / Answer

Cash flow from operating activities net income /profit for the year 108,400 Adjustments to reconcile net income to Cash flow from operating activities Depreciation expense 33,440 Gain on sale of land -4,020 increase in accounts receivable -5650 decrease in merchandise inventory 5010 Decrease in accounts payable -8570 20,210 Net cash flow from operating activities 128,610 cash flow from investing activities cash from sale of land (101720-69250)+(4020) 36490 purchase of Equipment -62380 net cash used by investing activities -25,890 cash flow from financing activities Repayment of bank loan -59,290 cash from common shares issued 24,630 Cash dividend paid (133400+108400-204,670) -37130 net cash used by financing activities -71,790 -71,790 Net increase in cash 30,930 cash at the beginning of the year 21,480 cash at year end 52,410

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.