Boatwig, Corp. Balance Sheet December 31, 2013 and December 31, 2014 2013 Dr. Cr
ID: 2392278 • Letter: B
Question
Boatwig, Corp. Balance Sheet December 31, 2013 and December 31, 2014 2013 Dr. Cr. 2014 Assets Cash $19,000 $71,000 Accounts Receivable 66,000 84,000 Inventory 185,000 184,000 Land 113,000 67,000 Equipment 195,000 256,000 Accummulated Depreciation (42,000) (69,000) Total $536,000 $593,000 Liabilities and Stockholders' Equity Accounts Payable $44,000 $36,000 Bonds Payable 198,000 143,000 Common Stock 167,000 222,000 Retained Earnings 127,000 192,000 Total $536,000 - - $593,000 Additional Information: 1. Net income for 2014 $125,000 2. No gains or losses were recorded in 2014 3. Cash dividends declared and paid $60,000 4. Bonds payable retired by issuing common stock $55,000 In the space below, prepare a Statement of Cash Flows for the year ended December 31, 2014: Use the worksheet (above) to aid your work if you like…. I will grade the resulting cash flow statement (below) only. Boatwig, Corp. Balance Sheet December 31, 2013 and December 31, 2014 2013 Dr. Cr. 2014 Assets Cash $19,000 $71,000 Accounts Receivable 66,000 84,000 Inventory 185,000 184,000 Land 113,000 67,000 Equipment 195,000 256,000 Accummulated Depreciation (42,000) (69,000) Total $536,000 $593,000 Liabilities and Stockholders' Equity Accounts Payable $44,000 $36,000 Bonds Payable 198,000 143,000 Common Stock 167,000 222,000 Retained Earnings 127,000 192,000 Total $536,000 - - $593,000 Additional Information: 1. Net income for 2014 $125,000 2. No gains or losses were recorded in 2014 3. Cash dividends declared and paid $60,000 4. Bonds payable retired by issuing common stock $55,000 In the space below, prepare a Statement of Cash Flows for the year ended December 31, 2014: Use the worksheet (above) to aid your work if you like…. I will grade the resulting cash flow statement (below) only.Explanation / Answer
Note: Bonds payable retired by issuing common stock is not included in the cash flow statement since it does not involve any cash flow and is an intra-financing activity.
BOATWIG, CORP. Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2014 Cash Flows from Operating Activities Net income 125000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense 27000 Changes in current operating assets and liabilities Increase in Accounts Receivable -18000 Decrease in Inventory 1000 Decrease in Accounts payable -8000 2000 Net cash provided by operating activities 127000 Cash Flows from Investing Activities Cash paid for equipment purchase -61000 Cash received from sale of land 46000 Net cash used in investing activities -15000 Cash Flows from Financing Activities Cash paid for dividends -60000 Net cash used in financing activities -60000 Net increase (decrease) in cash 52000 Cash balance, December 31, 2013 19000 Cash balance, December 31, 2014 71000