Bonita Industries reported the following information for 2017. Bonita Industries
ID: 2337931 • Letter: B
Question
Bonita Industries reported the following information for 2017. Bonita Industries Comparative Balance Sheets December 31 Assets 2017 2016 Change $65,990 62,110 43,610 5,960 54,550 198,140 (21,120) 182,420 (28,360) Increase/Decrease $29,810 Increase 39,890 Increase 43,610 Increase 1,980 Increase 16,020 Decrease $36,180 Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 22,220 -0 3,980 70,570 198,140 (14,080) 68,470 (9,970) 0- 7,040 Increase 113,950 Increase 18,390 Increase $563,300 $375,510 Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable $43,320 $40,140 $3,180 Increase 0 10,030 10,030 DecreaseExplanation / Answer
Solution:-
Cash flow statement by using indirect method:-
= ( 159,600 + 39,740 + 2,010 + 3,180 ) - ( 39,890 + 43,610 + 1,980 + 10,030)
= 204530 - 95510
= $ 109,020
= ($16,020 + $34,200 ) - ($164,470)
= 50,220 - 164,470
= $114,250
= 169,370 - ( 84,780 + 49,550 )
= $35,040
= $ 109,020 + $114,250 + $35,040
= $258,310
$65,990
Cash flow from Operating Activities:(X) Net income : Add $159,600 Depreciation : Add $39,740 Loss on disposal of equipment : Add $2,010 Increase A/c receivable : Less $39,890 Increase inventory : Less $43,610 Increase prepaid Exp : Less $1,980 Increase A/c payable : Add $3,180 Decrease accrued Exp : Less $10,030 Cash flow from Operating Activities:(X)= ( 159,600 + 39,740 + 2,010 + 3,180 ) - ( 39,890 + 43,610 + 1,980 + 10,030)
= 204530 - 95510
= $ 109,020
Cash flow from Operating Activities:(Y) Sold land : Add $16,020 Purchase equipment : Less $164,470 Sold equipment : Add $34,200 Cash flow from investing Activities:(Y)= ($16,020 + $34,200 ) - ($164,470)
= 50,220 - 164,470
= $114,250
Cash flow from financing Activities:(Z) Cash dividend : Less $84,780 Redeem bonds : Less $49,550 Issue common stock : Add $169,370 Cash flow from financing Activities:(X)= 169,370 - ( 84,780 + 49,550 )
= $35,040
Total cash flow = (X + Y + Z)= $ 109,020 + $114,250 + $35,040
= $258,310
Beginning Cash balance $36,180 Ending cash balance$65,990