The balance sheet data of Pina Company at the end of 2017 and 2016 are shown bel

Question

The balance sheet data of Pina Company at the end of 2017 and 2016 are shown below.

2017

2016

$30,300

$34,700

55,300

44,800

64,700

45,300

15,200

25,100

89,700

74,500

(17,940

)

(8,000

)

70,400

39,900

$307,660

$256,300

$65,600

$51,600

15,200

18,000

–0–

22,800

30,000

–0–

189,900

159,400

6,960

4,500

$307,660

$256,300

Land was acquired for $30,500 in exchange for common stock, par $30,500, during the year; all equipment purchased was for cash. Equipment costing $12,900 was sold for $2,900; book value of the equipment was $6,100. Cash dividends of $10,000 were declared and paid during the year.

Compute net cash provided (used) by: (Show amounts that decrease cash flow with either a - sign e.g. -12,000 or in parenthesis e.g. (12,000)

$

2017

2016

Cash

$30,300

$34,700

Accounts receivable (net)

55,300

44,800

Inventory

64,700

45,300

Prepaid expenses

15,200

25,100

Equipment

89,700

74,500

Accumulated depreciation—equipment

(17,940

)

(8,000

)

Land

70,400

39,900

$307,660

$256,300

Accounts payable

$65,600

$51,600

Accrued expenses

15,200

18,000

Notes payable—bank, long-term

–0–

22,800

Bonds payable

30,000

–0–

Common stock, $10 par

189,900

159,400

Retained earnings

6,960

4,500

$307,660

$256,300

Explanation / Answer

Statement of Cash flow

Notes :

1. Equipment A/c

2. Accumulated Depreciation - Equipment

3. There will be no record of Purchase of Land in lieu of Common stock of $30,500 because there is no involvement of cash in that.

Particulars Working Amount ($) Operating Activities Non- Cash expenses 22,400 Depreciation for the year (Note 2) 16,740 Transfer To Retained Earnings 2,460 Loss on sale of Equipment (Book Value - Sales price) 3,200 Dividend Paid 10,000 Change in Working Capital Increase in Account Receivable (net) 44,800 - 55,300 (10,500) Increase in Inventory 45,300 - 64,700 (19,400) Decrease in Prepaid Expenses 25,100 - 15,200 9,900 Increase in Accounts payable 65,600 - 51,600 14,000 Decrease in Accrued Expenses 15,200 - 18,000 (2,800) Net Cash provided / (used) by Operating Activities (A) 23,600 Investing Activities Sale of Equipment 2,900 Purchase of Equipment (Note 1) (28,100) Net Cash provided / (Used) Investing Activities (B) (25,200) Financing Activities Dividend Paid (10,000) Repayment Of Notes (22,800) Issue of Bonds 30,000 Net Cash provided / (Used) Financing Financing Activities (C) (2,800) Net Cash used (A+B+C) (D) (4,400) Opening Cash and Cash equivalent (E) 34,700 Closing Cash and Cash Equivalent (D+E) 30,300

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.