The comparative balance sheets of Vaughn Inc. at the beginning and the end of th
ID: 2512707 • Letter: T
Question
The comparative balance sheets of Vaughn Inc. at the beginning and the end of the year 2017 are as follows.
VAUGHN INC.
BALANCE SHEETS
Dec. 31, 2017
Jan. 1, 2017
Inc./Dec.
Net income of $48,620 was reported, and dividends of $29,720 were paid in 2017. New equipment was purchased and none was sold.
Prepare a statement of cash flows for the year 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
VAUGHN INC.
BALANCE SHEETS
Dec. 31, 2017
Jan. 1, 2017
Inc./Dec.
Assets Cash $ 47,100 $ 15,100 $32,000 Inc. Accounts receivable 95,620 90,520 5,100 Inc. Equipment 43,620 24,520 19,100 Inc. Less: Accumulated Depreciation-Equipment 21,620 11,000 10,620 Inc. Total $164,720 $119,140 Liabilities and Stockholders’ Equity Accounts payable $ 24,620 $ 17,520 7,100 Inc. Common stock 102,100 82,520 19,580 Inc. Retained earnings 38,000 19,100 18,900 Inc. Total $164,720 $119,140Explanation / Answer
Prepare a statement of cash flows for the year 2017
Cash flow from operating activities Net income 48620 Adjustment to reconcile net income Depreciation 10620 Increase account receivable -5100 Increase account payable 7100 Net cash flow from operating activities 61240 Cash flow from investing activities Purchase equipment -19100 Net cash flow from investing activities -19100 Cash flow from financing activities Issue common stock 19580 Dividend paid -29720 Net cash flow from financing activities -10140 Net cash flow 32000 Beginning cash 15100 Ending cash 47100