Obj. 2,3,4, Y2, is shown as fol cash flow from The comparative balance sheet of

Question

Obj. 2,3,4, Y2, is shown as fol cash flow from The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20 .. $ 155,000 770,000 500,000 PR 13-1A Statement of cash flows-indirect method Dec. 31, 20Y3 Dec.31,20Y2 activities, $490,000 ting Assets s 150,000 Cash 400,000 750,000 100,000 EXCEL TEMPLATE 1,200,000 (500,000) . ..(600,000) Accumulated depreciation-equipment $2.675,000 $2100000 Liabilities and Stockholders' Equity 45,000 ....30,000 200,000 1,360,000 300,000 50,000 25,000 600,000 175,000 950,000 $2,100,000 . .. Accrued expenses payable (operating expenses) Paid-in capital: Excess of issue price over par-common stock...... Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: A. The investments were sold for $175,000 cash. B. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. D. The common stock was issued for cash. E. There was a $500,000 credit to Retained Earnings for net income. F. There was a $90,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities

Explanation / Answer

Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash Flows from Operating Activities: Net income 500000 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense 100000 Gain on Sale of investments -75000 Increase in accounts receivable -50000 Increase in inventory -20000 Increase in accounts payable 40000 Decrease in accrued expenses payable -5000 -10000 Net cash provided by operating activities 490000 Cash Flows from Investing Activities: Purchase of Land -500000 Purchase of Equipment -200000 Sale of Investments 175000 Net Cash used by Investing Activities -525000 Cash Flows from Financing Activities Payment of Cash Dividends -85000 Issuance of Common Stock 125000 Net Cash provided by Financing Activities 40000 Net Increase in Cash 5000 Cash at Beginning of Period 150000 Cash at End of Period 155000

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