Yoric Company listed the net changes in its balance sheet accounts for the past
ID: 2777152 • Letter: Y
Question
Yoric Company listed the net changes in its balance sheet accounts for the past year as follows:
Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)
Debits > Credits by: Credits >Debits by: Cash $ 113,700 Accounts receivable 170,900 Inventory $ 64,700 Prepaid expenses 4,100 Long-term loans to subsidiaries 88,000 Long-term investments 97,000 Plant and equipment 299,000 Accumulated depreciation 65,200 Accounts payable 49,300 Accrued liabilities 5,300 Income taxes payable 9,000 Bonds payable 207,000 Common stock 130,000 Retained earnings 76,800 $ 690,000 $ 690,000
Explanation / Answer
Answer:
Cash Flow Statement
Note:
Net Income figure is the balancing figure to match with net increase in cash balance of $ 113,700.
Particulars Amount Amount Cash Flows from Operating Activities Net Profit as per P&L (Balancing figure by reverse calculation) $ 87,300 Add: Depreciation (Non cash item $ 126,200 + $ 65,200) $ 191,400 Add: Income Tax Provision $ 9,000 Less: Profit on Sale of Plant ($ 160,300 - $ 126,200 - $ 35,600) ($ 1,500) Less: Increase in Accounts Receivable ($ 170,900) Add: Decrease in Inventory $ 64,700 Add: Increase in Accounts Payable $ 49,300 Less: Decrease in other payables ($ 5,300) Add: Increase in Prepaid Expenses ($ 4,100) Cash generated from operating activities $ 219,900 Cash Flow from Investing Activities Add: Decrease in loans to subsidiaries $ 88,000 Less: Increase in long term investments ($ 97,000) Less: Purchase of Plant & Equipment ($ 459,300) Add: Sale of Equipment $ 35,600 Cash used in investing activities ($ 432,700) Cash Flow from Financing Activities Add: Bonds Issued $ 207,000 Add: Common Stock Issued $ 130,000 Less: Dividend Paid ($ 10,500) Cash generated from financing activities $ 326,500 Net Increase in cash (given in question) $ 113,700 Opening Cash Balance $ 109,900 Closing Cash Balance (Net increase + Opening Cash) $ 223,600Related Questions
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