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The following are Nash Corp.’s comparative balance sheet accounts at December 31

ID: 2529237 • Letter: T

Question

The following are Nash Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.

COMPARATIVE BALANCE SHEETS

2017

2016

Increase
(Decrease)

$815,800

$705,800

$110,000

1,130,300

1,166,700

(36,400

)

1,855,300

1,726,900

128,400

3,299,700

2,983,700

316,000

(1,175,500

)

(1,031,700

)

(143,800

)

310,800

272,900

37,900

249,100

249,100

$6,485,500

$5,824,300

$661,200

$1,005,600

$946,600

$59,000

29,700

50,400

(20,700

)

80,300

99,200

(18,900

)

376,400

376,400

500,000

500,000

1,487,600

1,487,600

3,005,900

2,740,500

265,400

$6,485,500

$5,824,300

$661,200

Additional information:

2017

2016


Prepare a statement of cash flows for Nash Corp. for the year ended December 31, 2017, using the indirect method.

COMPARATIVE BALANCE SHEETS

2017

2016

Increase
(Decrease)

Cash

$815,800

$705,800

$110,000

Accounts receivable

1,130,300

1,166,700

(36,400

)

Inventory

1,855,300

1,726,900

128,400

Property, plant, and equipment

3,299,700

2,983,700

316,000

Accumulated depreciation

(1,175,500

)

(1,031,700

)

(143,800

)

Investment in Myers Co.

310,800

272,900

37,900

Loan receivable

249,100

249,100

   Total assets

$6,485,500

$5,824,300

$661,200

Accounts payable

$1,005,600

$946,600

$59,000

Income taxes payable

29,700

50,400

(20,700

)

Dividends payable

80,300

99,200

(18,900

)

Lease liabililty

376,400

376,400

Common stock, $1 par

500,000

500,000

Paid-in capital in excess of par—common stock

1,487,600

1,487,600

Retained earnings

3,005,900

2,740,500

265,400

   Total liabilities and stockholders’ equity

$6,485,500

$5,824,300

$661,200

Explanation / Answer

Nash Corp's Statement of Cash flows for the year ended 31 December 2017 Year ended 31 March 2017 Cash flow from operating activities Profit before tax                 345,700 Adjustments for: Depreciation                 143,800 Interest income                 (13,810) Proposed dividend for current year                   80,300 Provision for tax made during the year                   29,700 Income from Investment                 (37,900) Profit on sale of FA                   (2,200) Operating loss before working capital changes                 545,590 Changes in working capital Increase/(Decrease) in trade payables                   59,000 Decrease/ (increase) in inventories               (128,400) Decrease/ (increase) in trade receivables                   36,400 Increase/(Decrease) in other current liabilities Increase/(Decrease) in non-current liabilities Increase/(Decrease) in other financial liabilities Decrease/ (increase) in other financial assets               (249,100) Decrease/ (increase) in other current assets Decrease/ (increase) in non-current assets Cash generated used in operations                 263,490 Income tax paid                   50,400 Net cash flows used in operating activities (A)                 213,090 Cash flow from Investing activities Payment for property, plant and equipment and intangible assets               (433,900) Proceeds from sale/ disposal of fixed assets                   39,800 Net proceeds from fixed deposits Interest received                   13,810 Net cash flow from investing activities (B)               (380,290) Cash flow from Financing activities Capital Lease for building                 376,400 Dividend Paid                 (99,200) Net cash flow from financing activities (C)                 277,200 Net increase in cash and cash equivalents (A+B+C)                 110,000 Cash and cash equivalents at the beginning of the year                 705,800 Cash and cash equivalents at the end of the year                 815,800

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