The comparative balance sheets for 2018 and 2017 and the statement of income for
ID: 2525582 • Letter: T
Question
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for National Intercable Company. Additional information from NIC's accounting records is provided also NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 $ in millions) 2018 2017 Assets Cash Accounts receivable $ 57 181 55 170 Less: Allowance for uncollectible accounts Prepaid insurance Inventory Long-term investment Land Buildings and equipment 12 165 90 150 270 170 150 290 (85) (75) Accumulated depreciation Less: Trademark 24 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable 25 852 856 $ 30 45 15 275 18 68 145 (22) (25) Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings 310 95 50 290 85 155 03 $852 $ 856Explanation / Answer
Direct method Statement of cash flow Cash flows from operating activities Cash inflows From customers $320-((181-8)-(170-6)) 311 From Investment Revenue (15-6) 9 320.00 Cash outflow To supplier of goods125+(170-165)+(45-30) -145 Payment of salaries expenses 55+(8-3) -60 For Insurance 13-(12-7) -8 For Bond Interest 30-(25-22) -27 For Income Tax 20-(18-15) -17 -257 Net cash from operating activities 63.00 Cash flows from investing activities Sale of Long term Investment $35 Sale of Buidlings part $3 Payment of annual lease -12 26 Net cash used investing activities 26.00 Cash flows from financing activities Retirement of Bonds Payable -130 Sale of common stock 30 Sale of Preferred Stock 50 Payment of Dividend -30 (80.00) Net cash from financing activities (80.00) Net Increase in cash and cash equivalents 9.00 Cash and cash equivalents at beginning of period 55.00 Ending Balance 64.00 Noncash investing & financincy activities Acquired $68 million of equipment If any doubt please comment