The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 a
ID: 2418606 • Letter: T
Question
The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows:
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$146,600.00
$179,800.00
4
Accounts receivable (net)
224,600.00
242,000.00
5
Merchandise inventory
321,600.00
299,200.00
6
Prepaid expenses
13,400.00
9,600.00
7
Equipment
655,000.00
537,000.00
8
Accumulated depreciation-equipment
(170,800.00)
(132,200.00)
9
Total assets
$1,190,400.00
$1,135,400.00
10
Liabilities and Stockholders’ Equity
11
Accounts payable (merchandise creditors)
$250,200.00
$237,600.00
12
Mortgage note payable
0.00
336,000.00
13
Common stock, $10 par
74,000.00
24,000.00
14
Paid-in capital: Excess of issue price over par—common stock
470,000.00
320,000.00
15
Retained earnings
396,200.00
217,800.00
16
Total liabilities and stockholders’ equity
$1,190,400.00
$1,135,400.00
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follows:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities
The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.
. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.
In CengageNOW, a Label is a text entry that does not have an amount associated with it.
In CengageNOW, an Amount Description is a text entry other than an Account that has an amount associated with it.
none
X
Statement of Cash Flows
Shaded cells have feedback.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities
The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.
. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$146,600.00
$179,800.00
4
Accounts receivable (net)
224,600.00
242,000.00
5
Merchandise inventory
321,600.00
299,200.00
6
Prepaid expenses
13,400.00
9,600.00
7
Equipment
655,000.00
537,000.00
8
Accumulated depreciation-equipment
(170,800.00)
(132,200.00)
9
Total assets
$1,190,400.00
$1,135,400.00
10
Liabilities and Stockholders’ Equity
11
Accounts payable (merchandise creditors)
$250,200.00
$237,600.00
12
Mortgage note payable
0.00
336,000.00
13
Common stock, $10 par
74,000.00
24,000.00
14
Paid-in capital: Excess of issue price over par—common stock
470,000.00
320,000.00
15
Retained earnings
396,200.00
217,800.00
16
Total liabilities and stockholders’ equity
$1,190,400.00
$1,135,400.00
Explanation / Answer
statement of cash flows
cash flows from operating activities
Net income 332000
Add: depreciation 83,400
cash flow before working capial change 415400
Add: decrease in accounts recievable 17400
less: increase in merchandise inventory (22400)
less: increase in prepaod expenses (3800)
add:increase in Accounts payable 12600
net cash generated from operating activity $419200
cash flows from investing activities
Cash paid for equipment (162800)
net cash Used from investing activity ($162800)
cash flows from Financing activities
Cash dividends (153600)
Payment Mortgage note payable (336000)
preoceed from common stock(10000 * $20) 200000
net cash used from investing activity ( $289600)
Net increase in cash and cash equivalent ($33200)
Add: cash and cash equivalent in beginning $179800
cash and cash equiavalent at end $146,600
Note:- Fully depreciated assets has no profit or loss , becasue here , cost is equal to depreciation amount