Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions
ID: 2331003 • Letter: I
Question
Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions The comparative balance sheet of Livers inc for December 31,20Y3 and 20Y2, is shown as tollows Dec. 31.203 Dec.31,2012 Assets 626,17000$585,760.00 Accounts receivable (net) 2784000208,880.00 41390.00616.790.00 240,820.00 0.00 Investments 0.00 Land 327.380.00 3 Equipment 70 90.00 5402000 167,160.00)(148930.00) 2,359,910.00 $2.057,340.00 101 Total assets Liabilities and Stockholders Equity 2Accounts payable (merchandise creditors) 15 Accrued expenses payable (operating expenses) 4 Dividends payable 5 Common stock, 54 par 4 Pald-in capital: Excess of issue price over 424,670.00 43,080.00 4,920.00 0.00 52050.00 19,300.00 102.00000 stock 417.40000 1309 840.001199 31000 2359.910.00 2057.34000 Retained earnings Total tiabilities and stockholders equityExplanation / Answer
Solution :
Livers Inc. Statement of Cash Flows For year ended December 31, 20Y3 Particulars Details Amount Cash Flow from Operating Activities: Net Income $206,210.00 Adjustments to reconcile net income to net cash provided by operations: Depreciation Expense ($167,160 - $148,930) $18,230.00 Gain on sale of investment ($279,890 - $240,820) -$39,070.00 Increase in accounts receivables ($227,840 - $208,880) -$18,960.00 Increase in inventory ($641,390 - $616,790) -$24,600.00 Increase in accounts payable ($424,670 - $404,080) $20,590.00 Decreae in accrued expenses payable ($52,050 - $43,080) -$8,970.00 Net Cash provided by operating activities $153,430.00 Cash Flow from Investing Activities: Purchase of Equipment ($704,290 - $554,020) -$150,270.00 Purchase of land -$327,380.00 Sale of investment $279,890.00 Net Cash Provided by Investing activities -$197,760.00 Cash Flow from Financing Activities: Proceed from issue of common stock ($140,000 + $417,400 - $102,000 - $280,600) $174,800.00 Dividend Paid ($19,300 + $95,680 - $24,920) -$90,060.00 Net Cash Provided by financing activities $84,740.00 Net Increase / (Decrease) in Cash $40,410.00 Cash balance at Dec 31, 20Y2 $585,760.00 Cash balance at Dec 31, 20Y3 $626,170.00