Hunter Company is developing its annual financial statements at December 31, 201

Question

Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized 2015 2014 Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment S 48 450 31.500 34,500 116,500 20,500 34,000 41,000 107,000 (39,000) (32.500) $191,950$170,000 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings S 28,000 750 41,000 87,500 34,700 24,500 1,000 53,000 65,000 26,500 $191,950 $170,000 Income Statement for 2015 Sales Revenue Cost of Goods Sold Other Expenses $105,000 63,500 29,000 Net Income 12,500 Additional Data a Bought equipment for cash, $9,500 b. Paid $12,000 on the long-term note payable c. Issued new shares of stock for $22,500 cash d. Declared and paid a $4,300 cash dividend e. Other expenses included depreciation, S6 500 salaries and wages, $10,500, taxes, $3,500, utilities $8,500 f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.

Explanation / Answer

CASH FLOW STATEMENT Cash flows from Operating Activities: Net Income from Operating Activities: 12500 Adjustment for r econciliation Deprecciation 6500 Decreasse in Accounts receivable 2500 Decrease in Inventory 6500 Increase in Accounts payable 3500 Decrease in salaries payable -250 Net Cash provided from Operating Activities 31250 Cash flows from Investing Activities: Purchase of Equipment -9500 Net cash used in Investing activities -9500 Cash flows from Financing Activities: Payment of Long term notes -12000 Issue of Common Stock 22500 Dividend paid -4300 Net Casah provided from Financing Activities 6200 Net cash increase during the year 27950 Beginning Cash 20500 Ending cash balance 48450

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