2:18 PM blackboard.morton.edu Sprint LTE 23% The balance sheets for King Company

Question

2:18 PM blackboard.morton.edu Sprint LTE 23% The balance sheets for King Company showed the following information. Additional information concerning transactions and events during 2015 are presented below: King Company Balance Sheet (S in thous) 2015 2014 Cash $12,700 $10,200 Accounts Receivable 53,400 20,300 Inventory 25,000 29,000 Investments Trading Securities (Net) 14,000 13,000 Long Term Investments Common Stock 460,000 315,000 Property, Plant & Equipment 266,500150,000 Accumulated Depreciation (35.600) (25,000) Total Assets $796,000 $512.500 Accounts Payable Other Accrued Liabilities28,000 17,000 Dividends Payable Bonds Payable 150,000 100,000 Common Stock Additional Paid-Capital Common Stock 200,000 100,000 Retained Earnings 219,000 Treasury Stock $16,000$26,500 35,000-0- 100,00050,000 367,000 (100.000) Total Liabilities and Stockholders Equity $796,000 $512,500

Explanation / Answer

2015 Cash flows from operating activities Net income    250,000.00 Adjustments for: Net cash provided from operating activities Depreciation 10600 Gain on sale of Equipment      (2,000.00) Increase in Trading Securities        1,000.00 Increase in accounts receivables -33100 Decrease in inventories        4,000.00 Decrease in Accounts Payable    (10,500.00) Increase in Accured payable      11,000.00 Net cash from operating activities    231,000.00 Cash flows from investing activities Purchase of Equipment (266500-(150000-15000) -131500 Sale of Equipment        5,000.00 Increase in Long term Investment (460000-(315000+10000) (135,000.00) Net cash used in investing activities (261,500.00) Cash flows from financing activities Issue of Common Stock (100000+50000)    150,000.00 Borrowings in Bonds payable      50,000.00 Repurchase Od Treasuarystock (100,000.00) Payment of Dividend (102000-35000)    (67,000.00) Net cash used in financing activities      33,000.00 Net increase in cash and cash equivalents      2,500.00 Cash at beginning    10,200.00 Cash and cash equivalents at end of period    12,700.00

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