Bonita Industries reported the following information for 2017. Bonita Industries

Question

Bonita Industries reported the following information for 2017.

Bonita Industries
Comparative Balance Sheets
December 31

Change
Increase/Decrease

Bonita Industries
Income Statement
For the Year Ended December 31, 2017

Use this information to prepare a statement of cash flows using the indirect method.

Bonita Industries
Comparative Balance Sheets
December 31

Assets 2017 2016

Change
Increase/Decrease

Cash $65,990 $36,180 $29,810 Increase Accounts receivable 62,110 22,220 39,890 Increase Inventory 43,610 –0– 43,610 Increase Prepaid expenses 5,960 3,980 1,980 Increase Land 54,550 70,570 16,020 Decrease Buildings 198,140 198,140 –0– Accumulated depreciation—buildings (21,120 ) (14,080 ) 7,040 Increase Equipment 182,420 68,470 113,950 Increase Accumulated depreciation—equipment (28,360 ) (9,970 ) 18,390 Increase      Totals $563,300 $375,510 Liabilities and Stockholders’ Equity Accounts payable $43,320 $40,140 $3,180 Increase Accrued expenses payable 0 10,030 10,030 Decrease Bonds payable 99,680 149,230 49,550 Decrease Common stock ($1 par) 229,490 60,120 169,370 Increase Retained earnings 190,810 115,990 74,820 Increase      Totals $563,300 $375,510

Explanation / Answer

Cash Flow Statement:-

Cash Flow from Operating Activities :-

Net Income

159600

(+) Depreciation

39740

(+) Loss on Disposal of Equipment

2010

(-) Increase A/c Receivable

39890

(-) Increase Inventory

43610

(-) Increase Prepaid Exp

1980

(+) Increase A/c Payable

3180

(-)Decrease Accrued Exp

10030

Cash Flow from Operating Activities (A)

109020

Cash Flow from Investing Activities :-

Sold Land

16020

(-) Purchase Equipment

164470

(+) Sold Equipment

34200

Cash Flow from Investing Activities (B)

(114250)

Cash Flow from Financing Activities :-

(-) Cash Dividend

84780

(-) Redeem Bonds

49550

(+) Issue Common Stock

169370

Cash Flow from Financing Activities (C)

35040

Total Cash Flow (A+B+C)

29810

(+) Beginning Cash Balance

36810

Ending Cash Balance

65990

Cash Flow from Operating Activities :-

Net Income

159600

(+) Depreciation

39740

(+) Loss on Disposal of Equipment

2010

(-) Increase A/c Receivable

39890

(-) Increase Inventory

43610

(-) Increase Prepaid Exp

1980

(+) Increase A/c Payable

3180

(-)Decrease Accrued Exp

10030

Cash Flow from Operating Activities (A)

109020

Cash Flow from Investing Activities :-

Sold Land

16020

(-) Purchase Equipment

164470

(+) Sold Equipment

34200

Cash Flow from Investing Activities (B)

(114250)

Cash Flow from Financing Activities :-

(-) Cash Dividend

84780

(-) Redeem Bonds

49550

(+) Issue Common Stock

169370

Cash Flow from Financing Activities (C)

35040

Total Cash Flow (A+B+C)

29810

(+) Beginning Cash Balance

36810

Ending Cash Balance

65990

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