ps//newconnect.mheducation.com/flow/connect.html t Method of Reporting Operating
ID: 2554760 • Letter: P
Question
ps//newconnect.mheducation.com/flow/connect.html t Method of Reporting Operating Cash Flo.. 6 Soved Use the following information for the Problems below. Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year (1) all sales are credit sales, (2) all credits to Accoun credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially ts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on debited to Prepaid Expenses. The company's income statement and balance sheets follow FORTEN COMP Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum, depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current iiabilíties Lone-term notes payable Total liaoilicies Equity Common stock, $5 panivalue Paid-in capitel in excess of par,. cosmon stock Retained earnings Total 11aoflities and equity 64,980$83,580 60,625 261,880 2,095 437,736408,828 147,500118,000 80,870 1,310 (41,625 552.000) S 543,611475,920 63,142 129,675 8,000 26 14137,675 3.908 82 2058.750 196,425 136, 141 182,750160,250 47,500 177,220 5 543,611475,e20Explanation / Answer
CASHFLOW STATEMENT: Cashflows frorm Operating Activities: Net Income from Operations 110975 Adjustment for reconiliation cashflows Depreciation 30750 Loss on sale of equipment 15125 Increase in Accounts receivable -20245 Increase in Inventory -28856 Decrease in Prepaid expense 785 Decrease in Accounts payable -66534 Increase in Short term notes payable 5000 Net cash provided from Operating activities 47000 Cashflows frorm Investing Activities: Purchase of Equipment -50000 Sale of Equipment 21625 Net cash used for Investing Activities -28375 Cashflows from financing Activities: Dividend paid -52100 Issue of common Stock 70000 Repayment of notes payable -55125 Net cash used in Financing Activities -37225 Net cash outflow during the year -18600 Beginning Balance of cash 83500 Ending Balance of cash 64900
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.