A comparative balance sheet for Rocker Company appears below: ROCKER COMPANY Com

Question

A comparative balance sheet for Rocker Company appears below:

ROCKER COMPANY
Comparative Balance Sheet Dec. 31, 2017 Dec. 31, 2016 Assets Cash $34,000 $11,000 Accounts receivable 18,000 13,000 Inventory 25,000 17,000 Prepaid expenses 6,000 9,000 Long-term investments 0 17,000 Equipment 60,000 33,000 Accumulated depreciation—equipment (20,000 ) (15,000 )     Total assets $123,000 $85,000 Liabilities and Stockholder's Equity Accounts payable $17,000 $7,000 Bonds payable 36,000 45,000 Common stock 40,000 23,000 Retained earnings 30,000 10,000     Total liabilities and stockholders' equity $123,000 $85,000 ROCKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Adjustments to reconcile net income to

Explanation / Answer

Statement of cash flow :

Cash flow from operating activity Net income 35000 Adjustment to reconcile net income Depreciation exp 5000 Loss on sale of investment 3000 Increase account receivable (5000) Increase inventory (8000) Decrease prepaid exp 3000 Increase account payable 10000 8000 Net cash flow from operating activities 43000 Cash flow from investing activity Sale of investment 14000 Purchase equipment (27000) Net cash flow from investing activity (13000) Cash flow from financing activity Dividend paid (15000) Redeem bonds payable (9000) Issue common stock 17000 Net cash flow from financing activity (7000) Net cash flow 23000 Beginning cash 11000 Ending cash 34000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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