Data Table More Info a. Acquisition of plant assets is $121,000. Of this amount,
ID: 2611534 • Letter: D
Question
Data Table More Info a. Acquisition of plant assets is $121,000. Of this amount, $102,000 is paid in cash Boost Plus, Inc. Income Statement Year Ended September 30, 2016 and S19,000 by signing a note payable Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: $ 230,000 90,000 140,000 b. Cash receipt from sale of land totals $21,000. There was no gain or loss. c. Cash receipts from issuance of common stock total $33,000 d. Payment of note payable is $18,000 e. Payment of dividends is $13,000 f. From the balance sheet: September 30 2016 2015 $ 51,000 28,000 Salaries Expense Depreciation Expense-Plant Assets Total Operating Expenses Cash Accounts Receivable Merchandise Inventory Plant Assets Accumulated Depreciation Land Accounts Payable Accrued Liabilities Notes Payable (long-term) Common Stock, no par Retained Earnings $ 31,000 9,000 56,000 85,000 90,000 (15,000) 103,000 21,000 18,000 18,000 5,000 266,000 38,000 92,000 211,000 (43,000) 82,000 36,000 10,000 19,000 38,000 308,000 Net Income Before Income Taxes ncome Tax Expense Net Income 79,000 61,000 6,000 $ 55,000 Print DoneExplanation / Answer
Answer
Cash Flow from Operating Activities
Net Profit before tax
61,000
Add: Non Cash and Non Operating Expenses
Depreciation
28,000
Operating profit before Working Capital changes
89,000
Add: Increase in Current Liabilities And decrease in Current Assets
Increase in Accounts Payable
15,000
Decrease in Accounts Receivable
18,000
Less: Decrease in Current Liabilities And Increase in Current Assets
Decrease in Accrued Liabilities
(8,000)
Increase in Inventory
(7,000)
Operating profit before Income Tax
107,000
Income Tax Paid
(6,000)
Cash Flow from Operating Activities (A)
101,000
Cash Flow from Investing Activities
Sale of Land
21,000
Purchase of Plant
(102,000)
Cash Used in Investing Activities (B)
(81,000)
Cash Flow from Financing Activities
Issue of Shares
33,000
Dividend Paid
(13,000)
Payment of Notes
(18,000)
Cash from Financing Activities ( C )
2,000
Increase in Cash Flow (A+B+C)
22,000
Opening Cash
9,000
Closing Cash
31,000
NON Cash Investing and Financing Activities
NON Cash Investing Activities
Purchase of Plant Assets by issuing Notes
19,000
Non Cash Financing Activities
Issue of Notes for purchasing Plant Assets
19,000
Equipment A/c
In $
In $
To Bal b/d
90,000
To Notes
19,000
To Bank
102,000
By Bal c/d
211,000
Total
211,000
Total
211,000
Acc. Depreciation A/c
In $
In $
By Bal b/d
15,000
By P&L
28,000
To bal. c/d
43,000
Total
43,000
Total
43,000
Notes A/c
In $
In $
To Bank
18,000
By Bal b/d
18,000
By Plant Assets
19,000
To bal. c/d
19,000
Total
37,000
Total
37,000
,
Cash Flow from Operating Activities
Net Profit before tax
61,000
Add: Non Cash and Non Operating Expenses
Depreciation
28,000
Operating profit before Working Capital changes
89,000
Add: Increase in Current Liabilities And decrease in Current Assets
Increase in Accounts Payable
15,000
Decrease in Accounts Receivable
18,000
Less: Decrease in Current Liabilities And Increase in Current Assets
Decrease in Accrued Liabilities
(8,000)
Increase in Inventory
(7,000)
Operating profit before Income Tax
107,000
Income Tax Paid
(6,000)
Cash Flow from Operating Activities (A)
101,000
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