[15 POINTS] Statement of cash flows. The information shown below is taken from t
ID: 2571472 • Letter: #
Question
[15 POINTS] Statement of cash flows. The information shown below is taken from the accounts of Waverly Corporation for the year ended December 31, 2017 Net income Amortization of patent Proceeds from issuance of common stock Decrease in inventory Sale of building at a $15,000 gain Decrease in accounts payable Purchase of equipment Payment of cash dividends Depreciation expense Decrease in accounts receivable Payment of mortgage Increase in short-term notes payable Sale of land at a $5,000 loss Purchase of delivery van Cash at beginning of year Instructions Prepare a statement of cash flows for Robinson Corporation for the year ended December 31, 2017 SE XC ADSHE O PREPA S314,000 12,000 103,000 27,000 85,000 15,000 185,000 24,000 55,000 23,000 75,000 8,000 40,000 33,000 205,000!Explanation / Answer
Waverly Corporation
Statement of cash flow for the year ended December 31, 2017
Cash Flow from Operations:
Net Income
$314,000
Add/Deduct items
Amortization of patent
$12,000
Decrease in inventory
$27,000
Depreciation expense
$55,000
Decrease in accounts receivable
$23,000
Decrease in accounts payable
($15,000)
Increase in short-term notes payable
$8,000
Gain on sale of building
($15,000)
Loss on sale of land
$5,000
Cash Flow from Operations
$414,000
Cash Flow from Investing Activities:
Sale of building
$85,000
Purchase of equipment
($185,000)
Sale of land
$40,000
Purchase of delivery van
($33,000)
Cash Flow from Investing Activities
($93,000)
Cash Flow from Financing Activities:
Issuance of Common Stock
$103,000
Cash Dividends paid
($24,000)
Payment of mortgage
($75,000)
Cash Flow from Financing Activities
$4,000
Increase in Cash
$325,000
Beginning Cash Balance
$205,000
Ending Cash Balance
$530,000
Statement of cash flow for the year ended December 31, 2017
Cash Flow from Operations:
Net Income
$314,000
Add/Deduct items
Amortization of patent
$12,000
Decrease in inventory
$27,000
Depreciation expense
$55,000
Decrease in accounts receivable
$23,000
Decrease in accounts payable
($15,000)
Increase in short-term notes payable
$8,000
Gain on sale of building
($15,000)
Loss on sale of land
$5,000
Cash Flow from Operations
$414,000
Cash Flow from Investing Activities:
Sale of building
$85,000
Purchase of equipment
($185,000)
Sale of land
$40,000
Purchase of delivery van
($33,000)
Cash Flow from Investing Activities
($93,000)
Cash Flow from Financing Activities:
Issuance of Common Stock
$103,000
Cash Dividends paid
($24,000)
Payment of mortgage
($75,000)
Cash Flow from Financing Activities
$4,000
Increase in Cash
$325,000
Beginning Cash Balance
$205,000
Ending Cash Balance
$530,000
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