Requirement 1. Prepare the 2016 statement of cash flows, formatting operating ac

Question

Requirement 1. Prepare the 2016 statement of cash flows, formatting operating activities by indirect method
The 2016 comparative balance sheet and income statement of Bone Appetit Pet Supply, Inc. are (ack he icon to view the comparative balance sheet) (Click icon to view the income statement) Bone Appeit Pet Supply, Inc, had no noncash investing and financing transactions during 2016. During the year, Bone Appetit Pet Supply, Inc., made no sales of land or equipment, no issuance of notes payable, no retirement of stock, and no treasury stock transactions Requirements 1. Prepare the 2016 statement of cash ows, formatting operating activities by the indirect method. 2. How will what you leamed in this problem help you evaluate an investment in Bone Appett Pet Supply, Inc.? Requirement 1. Prepare the 2016 statement of cash flows, formatting operating activities by the indirect melthod Complete the statement one section at a time, beginning with the cash flows from operating activities.(Use parentheses or a minus sign for numbers to be Bone Appetit Pet Supply, Inc. Statement of Cash Flows Year Ended December 31. 2016 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash: Cash balance, December 31,2015 Cash balance, December 31, 2016 Requirement 2. How will what you leaned in this problem help you evaluate an investment in Bone Appeit Pet Supply, Inc.? A. Help predict Bone Appeers ablity to pay debt and dividends O B. Help predict Bone Appett's future cash flow ° C. Understand how Bone Appetirs operating act ites, investing activities, and financing activities generate cash receipts and cash payments O D. All of the above Choose from any list or enter any number in the input fields and then continue to the next question

Explanation / Answer

Answer = 2)

With Cash Flow stament we know all the below three statement given , so all the statment are correct.

Answer = Option D = All of the above

Statement of Cash Flows AS ON DECEMBER 31 2016 Amount in $ Amount in $ Net income $             64,700 Cash flows from operating activities Adjustments for: Depreciation of the year $                4,600 $                4,600 (Increase) / Decrease in Account receivables $                1,400 Inventory Decrease / (Increase) $              -2,100 Accrued Liabilities $                2,100 Accounts payable Increase / ( Decrese) $              -4,800 $              -3,400 Net cash from operating activities $             65,900 Cash flows from investing activities Purchase of Fixed Assets $            -33,800 Prucase of Equipment $              -3,600 Net cash used in investing activities $            -37,400 Cash flows from Financing activities Long Term liabilities $            -27,000 Dividend Paid $            -24,900 Issue of common sTock $             24,500 Net cash used in financing activities $            -27,400 Net increase in cash and cash equivalents $                1,100 Add :Cash and cash equivalents at beginning of period $                5,500 Cash and cash equivalents at end of period $                6,600 Dividend Calculation Net Profit = $             64,700 Add: Opening $                2,600 Less: Closing $             42,400 Dividend Paid = $             24,900

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