The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is
ID: 2418690 • Letter: T
Question
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as follows:
Question not attempted.
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$626,100.00
$585,190.00
4
Accounts receivable (net)
228,630.00
208,060.00
5
Inventories
641,030.00
617,620.00
6
Investments
0.00
239,830.00
7
Land
328,160.00
0.00
8
Equipment
705,110.00
553,850.00
9
Accumulated depreciation-equipment
(166,840.00)
(147,700.00)
10
Total assets
$2,362,190.00
$2,056,850.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$423,690.00
$404,660.00
13
Accrued expenses payable (operating expenses)
42,340.00
53,240.00
14
Dividends payable
23,050.00
18,680.00
15
Common stock, $4 par
156,000.00
93,000.00
16
Paid-in capital: Excess of issue price over par—common stock
417,000.00
279,200.00
17
Retained earnings
1,300,110.00
1,208,070.00
18
Total liabilities and stockholders’ equity
$2,362,190.00
$2,056,850.00
Additional data obtained 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.
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$626,100.00
$585,190.00
4
Accounts receivable (net)
228,630.00
208,060.00
5
Inventories
641,030.00
617,620.00
6
Investments
0.00
239,830.00
7
Land
328,160.00
0.00
8
Equipment
705,110.00
553,850.00
9
Accumulated depreciation-equipment
(166,840.00)
(147,700.00)
10
Total assets
$2,362,190.00
$2,056,850.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$423,690.00
$404,660.00
13
Accrued expenses payable (operating expenses)
42,340.00
53,240.00
14
Dividends payable
23,050.00
18,680.00
15
Common stock, $4 par
156,000.00
93,000.00
16
Paid-in capital: Excess of issue price over par—common stock
417,000.00
279,200.00
17
Retained earnings
1,300,110.00
1,208,070.00
18
Total liabilities and stockholders’ equity
$2,362,190.00
$2,056,850.00
Explanation / Answer
Statement of Cash Flow Particulars Amount Total Amount Opening cash and cash equivalents 585,190.00 Income 188,740.00 Gain on sale of invt (39,470.00) Depreciation 19,140.00 Increase in AR = 228,630 - 208060 (20,570.00) Increase in inventory=641030 - 617620 (23,410.00) Increase in AP = 423690- 404660 19,030.00 Decrease in Accrued Exp = 42340-53240 (10,900.00) Cash flow from operating activities 132,560.00 Cash flow from Investing activities Sale of invt 279,300.00 Purchase of Land (328,160.00) Purchase of PPE = 705110 - 553850 (151,260.00) Cash flow from Investing activities (200,120.00) Cash flow from Financing activities Issue of Stock 63,000.00 Issue of additional Paid in capital 137,800.00 Dividends Paid (92,330.00) Cash flow from Financing activities 108,470.00 Closing cash and cash equivalents 626,100.00