The comparative balance sheets for Greenville Co.. for December 31.2016 and 2015
ID: 2487925 • Letter: T
Question
The comparative balance sheets for Greenville Co.. for December 31.2016 and 2015 arc below Additional data for 2016 is as follows: (a) The investments were sold for $70,000 (therefore, no gain or loss) (b) Equipment was purchased for S183,000 (c) Bonds Payable for S100.000 were retired by payment at their face amount (therefore, no gain or loss) (d) 5,000 shares of common stock were issued at $ 3 per share cash (c) Net Income for the year was $129,000 (f) Cash Dividends declared and paid were $25,000 Required: Prepare a statement of cash flows, using ihc indirect method (Suggestion middot Knock three zeros off all numbers. Do your work and prepare your cash flow statement in thousands.)Explanation / Answer
Cash flow statement ($'000)
net income 129 adjustments for reconciling net income with operating cash flow depreciation (202-176) 26 Decrease in accounts receivable (48-37) 11 Increase in accounts payable (62-44) 18 Increase in inventories (108-100) -8 Net cash provided by operating activites 176 Investing activites sale of investments 70 Purcahse of equipment -183 Net cash used in investing activites -113 Financing activites Retirement of bond -100 Payment of dividend -25 Issue of shares 65 Net cash used in financing activites -60 Net increase in cash 3 Beginning balance 50 Ending balance 53