The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is
ID: 2534252 • Letter: T
Question
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
1
Dec. 31, 20Y3
Dec. 31, 20Y2
2
Assets
3
Cash
$625,080.00
$586,430.00
4
Accounts receivable (net)
228,260.00
209,470.00
5
Inventories
641,070.00
616,400.00
6
Investments
0.00
240,170.00
7
Land
327,640.00
0.00
8
Equipment
705,000.00
552,830.00
9
Accumulated depreciation-equipment
(165,670.00)
(148,610.00)
10
Total assets
$2,361,380.00
$2,056,690.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$425,090.00
$405,900.00
13
Accrued expenses payable (operating expenses)
43,140.00
52,460.00
14
Dividends payable
23,780.00
19,970.00
15
Common stock, $4 par
147,000.00
96,000.00
16
Paid-in capital: Excess of issue price over par—common stock
417,200.00
279,600.00
17
Retained earnings
1,305,170.00
1,202,760.00
18
Total liabilities and stockholders’ equity
$2,361,380.00
$2,056,690.00
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Livers Inc.
Statement of Cash Flows
1
Cash flows from operating activities:
2
3
Adjustments to reconcile net income to net cash flow from operating activities:
4
5
6
Changes in current operating assets and liabilities:
7
8
9
10
11
12
13
Cash flows from investing activities:
14
15
16
17
18
19
Cash flows from financing activities:
20
21
22
23
24
Cash at the beginning of the year
25
Cash at the end of the year
1
Dec. 31, 20Y3
Dec. 31, 20Y2
2
Assets
3
Cash
$625,080.00
$586,430.00
4
Accounts receivable (net)
228,260.00
209,470.00
5
Inventories
641,070.00
616,400.00
6
Investments
0.00
240,170.00
7
Land
327,640.00
0.00
8
Equipment
705,000.00
552,830.00
9
Accumulated depreciation-equipment
(165,670.00)
(148,610.00)
10
Total assets
$2,361,380.00
$2,056,690.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$425,090.00
$405,900.00
13
Accrued expenses payable (operating expenses)
43,140.00
52,460.00
14
Dividends payable
23,780.00
19,970.00
15
Common stock, $4 par
147,000.00
96,000.00
16
Paid-in capital: Excess of issue price over par—common stock
417,200.00
279,600.00
17
Retained earnings
1,305,170.00
1,202,760.00
18
Total liabilities and stockholders’ equity
$2,361,380.00
$2,056,690.00
Explanation / Answer
1.
2.
Livers Inc Partial Statement of Cash Flows Cash flows from operating activities Net Income $ 197,450 Adjustments to reconcile net income to : Depreciation expenses $ 17,060 165670-148610 Gain on sale of investment $ (39,980) 240170-280150 Increase in accounts receivable $ (18,790) 209470-228260 Increase in inventory $ (24,670) 616400-641070 Increase in accounts payable $ 19,190 425090-405900 Decrease in accrued expense payable $ (9,320) 43140-52460 Net cash flow from operating activities $ 140,940