Problem 12-7A Presented below are the financial statements of Kurtzel Company KU
ID: 2416739 • Letter: P
Question
Problem 12-7A Presented below are the financial statements of Kurtzel Company KURTZEL COMPANY Balance Sheets 014 $ 72,030 41,160 57,624 123,480 (65,856) 228,438 2013 41,160 28,812 41,160 160,524 (49,392 222,261 Accounts receivable Property, plant, and equipment Total Liabilities and Stockholders' Equit Accounts payable ncome taxes payable Bonds payable Common stock Retained eanings Total s 39,102 30,870 16,464 67,914 28,812 78,204 14,406 34,986 37,044 102,900 228,438 EL COMPA Income Sales revenue Cost of goods sold Gross profit Selling expenses $498,036 360,150 137,886 $37,044 19,392 88,494 Income from operatios Interest expense Income before income taxes ncome tax expense Net income 82,320 Additional data 1. Depreciation expense was $36,015. 2. Dividends declared and paid were $41,160 3. During the year equipment was sold for $17,493 cash. This equipment cost $37,044 originally and had accumulated depreciation of $19,551 at the time of sale.Explanation / Answer
Cash flow for the year ended December 2014. Particulars amount in $ Amount in $ Net Income 65,856 Adjustments to reconcile net Income Net cash flow from operating activities Depreciation expense 36,015 Increase in accounts Receivable -12,348 Increase in Inventory -16,464 Increase in Accounts payable 8,232 decrease in incometax payble -2,058 13,377 Net cash flow from operating activities 79,233 Cash flow from investment activies Sale of Equipment 17,493 Net Cash flow from investment activies 17,493 Cash flow from finance activities Payment to dividends -41,160 Redemption of bonds -32,928 Issurance of common stock 8,232 Net cash received from finance activies -65,856 Net Increase in cash 30,870 Beginning period 41,160 Cash at end of period 72,030