Charlotte Company\'s net income last year was $79,000. Changes in the company\'s
ID: 2489791 • Letter: C
Question
Charlotte Company's net income last year was $79,000. Changes in the company's balance sheet accounts for the year appear below:
The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend $11,000.
Required:
Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
Prepare the investing activities section of the company's statement of cash flows for the year.(Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
Prepare the financing activities section of the company's statement of cash flows for the year.(Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
Charlotte Company's net income last year was $79,000. Changes in the company's balance sheet accounts for the year appear below:
Explanation / Answer
Cash Flow Statement
Cash flow from operating activities
Net Income 79000
Decrease in inventory 24000
Increase in prepaid expenses (7000)
Increase in accounts receivable (17000)
Decrease in accounts payable (24000)
Increase in income tax payable 44000
Increase in accrued liabilities 14000
(A) 113000
Cash flow from investing activities
Purchase of property, plant and equipment (65000)
Increase in long term investment (35000)
(B) (100000)
Cash flow from financing activities
Increase in common stock 25000
Decrease in bonds payable (55000)
Cash Dividend Paid (11000)
(C) (41000)
Decrease in Cash ( A + B + C ) = 113000 - 100000 -41000
= - 28000