Paddleboard Inc. began operations on January 1, 2016. Its post-closing trial bal

Question

Paddleboard Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016 and 2017, is shown below along with some other information.

Other information regarding Paddleboard Inc. and its activities during 2017:

1. Assume all accounts have normal balances.
2. Cash dividends were declared and paid during the year.
3. There were no sales of property, plant, and equipment assets during the year.
4. Investments were sold for cash at their original cost.

Required:
Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2017. (List any deduction in cash and cash outflows as negative amounts. Enter amounts in thousands, not in dollar.)

Paddleboard Inc. Income Statement For Year Ended December 31, 2017 (000s)   Revenues:         Sales $3,884         Cost of goods sold 1,426   Gross Profit 2,458   Expenses:                       Other expenses $780         Depreciation expense 110         Total operating expenses 890   Profit from operations 1,568     Income tax expense 488   Profit $1,080

Explanation / Answer

Paddleboard Inc. Cash Flow Statement For the year ended December 31, 2017 Cash flows from operating activities Net Income $ 1,080 Adjustment to reconcile net income to: Depreciation expense $   110 Increase in accounts receivable $ (710) Decrease in inventory $   570 Increase in accounts payable $   480 Decrease in accrued liabilities $ (160) $     290 Net cash provided by operating activities $ 1,370 Cash flows from investing activities Proceeds from sale of investment $   160 $2,340-$2,180 Purchase of property, plant and equipment $ (320) $2,820-$3,140 Net cash used by investing activities $   (160) Cash flows from financing activities Repayment of bonds $   (60) $3,740-$3,800 Proceeds from issue of stock $   980 Dividend paid $ (190) $4,020-$3,130-$1,080 Net cash provided by financing activities $     730 Net increase in cash and cash equivalents $ 1,940 Cash and cash equivalents at beginning of period $ 1,940 Cash and cash equivalents at end of period $ 3,880

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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