tion #7 Statement of Cash Flows-Indirect Method compilation (16 poin indirect me

Question

tion #7 Statement of Cash Flows-Indirect Method compilation (16 poin indirect method for the year ended December 31, 2016. Balance Sheet and Income Stater on usinn information is provided below for 2016 and 2015. BALANCE SHEET Cash Accounts receivable Merchandise inventory Land Buildings and equipment Less accumulated depreciation 1231/16 S140,000 180,000 194.000 20,000 12/3115 S 96,000 208.000 130,000 110,000 $380,000 S380,000 192.000) 188,000 152,000) 228,000 Accounts payable Accrued expenses payable Bonds payable Common stock (no par) Retained earnings S 90,000 176,000 180,000 108,000 168,000 S 48,000 196,000 300.000 108,000 S772.000 12/31/16 S5,200,000 4,552.000 356,000 40,000 24,000 104.000 Sales Cost of sales Selling expenses and administrative expenses n expense Loss on sale of land Other expenses Net income Additional Information: (A) Land with an original cost of $90.000 was sold for $66,000 during 2016. (B) $120,000 of bonds payable reached maturity and were retired (paid off) during 2016 (C) Dividends declared and paid for the year were $76,000. Reguired: On the answer sheet on the following page, prepare the Statement of Cash Flows in 2016 for Justin Corporation using the indirect method for operating activities. You may not need to use every space provided on the sheet! Please also show subtotals for each of operating, investing, and financing activities. category

Explanation / Answer

Statement of cash flow :

Cash flow from operating activities Net income 124000 Adjustment to reconcile net income Depreciation exp 40000 Loss on sale of land 24000 Decrease account receivable 28000 Increase inventory (64000) Increase account payable 42000 Decrease accured expenses payable (20000) Net cash flow from operating activities 174000 Cash flow from investing activities Sale of land 66000 Net cash flow from investing activities 66000 Cash flow from financing activities Dividend paid (76000) Bonds redeem (120000) Net cash flow from financing activities (196000) Net cash flow 44000 Beginning cash 96000 Ending cash 140000

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