Yoric Company listed the net changes in its balance sheet accounts for the past
ID: 2520318 • Letter: Y
Question
Yoric Company listed the net changes in its balance sheet accounts for the past year as follows:
The following additional information is available about last year’s activities:
Net income for the year was $ ? .
The company sold equipment during the year for $35,400. The equipment originally cost $160,200 and it had $126,700 in accumulated depreciation at the time of sale.
Cash dividends of $10,100 were declared and paid during the year.
The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below:
The balance in the Cash account at the beginning of the year was $109,900; the balance at the end of the year was $ ? .
If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change.
Required:
Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)
Debits >Credits by: Credits >
Debits by: Cash $ 132,300 Accounts receivable 170,500 Inventory $ 84,400 Prepaid expenses 4,000 Long-term loans to subsidiaries 117,000 Long-term investments 90,000 Plant and equipment 278,000 Accumulated depreciation 65,800 Accounts payable 49,800 Accrued liabilities 5,500 Income taxes payable 9,500 Bonds payable 401,000 Common stock 124,000 Retained earnings 76,800 $ 804,300 $ 804,300
Explanation / Answer
Cash flow Statement Operating Actvities Net Income (76800+10100) 86900 Adjustment to reconcile net income to Cash Basis Depreciation 1051700+126700-985900 192500 Gain on sale -1900 Increase in Acount Receivable -170500 Decrease in Inventory 84400 Increase in Prepaid expenses -4000 Increase in Accounts payable 49800 Decrease in Accrued liabilities -5500 Increase in taxes payable 9500 154300 Net Cash provided by operating Activities 241200 Investing Activities Sales of Equipment 35400 Additions to plant and equipment -438200 Additions to long-term investments -90000 Cash outflow from investment activities -492800 Financing Activities Issuance of bonds payable 401000 Re purchase of common stock -124000 Decrease in long-term loans to subsidiaries 117000 Dividend Paid -10100 Cash flow from Financing Activities 383900 Increase in cash flow 132300 Beginning Cash Flow 109900 Ending Cash flow 242200
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