The comparative balance sheets for Tamarisk, Inc. as of December 31 are presente
ID: 2545443 • Letter: T
Question
The comparative balance sheets for Tamarisk, Inc. as of December 31 are presented below Tamarisk, Inc. Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total 2017 2016 S5,550 168,261 16,976 161,095 222,200 75,548 $49,995 64,438 157,762 23,331 144,430 222,200 (66,660) (44,440) 249,975 172,205 (49,995) (38,885) $832,950 $751,036 Liabilities and Stockholders' Equit Accounts payable Bonds payable Common stock, $1 par 49,695 $39,996 333,300 177,760 199,980 $832,950 $751,036 333,300 222,200 227,755 Retained earnings Total Additional information: 1. Operating expenses include depreciation expense of $46,662. 2. Land was sold for cash at book value 3. Cash dividends of $13,332 were paid, 4. Net income for 2017 was $41,107 5. Equipment was purchased for $102,212 cash. In addition, equipment costing $24,442 with a book value of $11,110 was sold for $8,888 cash. 6. 44,440 shares of $1 par value common stock were issued in exchange for land with a fair value of $44,440 Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).)Explanation / Answer
Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities: Net income 41107 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense 46662 Loss on Sale of Equipment 2222 Decrease in Accounts receivable 8888 Increase in inventory -10499 Decrease in Prepaid expenses 6355 Increase in accounts payable 9699 63327 Net cash provided by operating activities 104434 Cash Flows from Investing Activities: Purchase of Equipment -102212 Sale of Land 27775 Sale of Equipment 8888 Net Cash Provided by Investing Activities -65549 Cash Flows from Financing Activities Payment of Cash Dividends -13332 Net Cash Used by Financing Activities -13332 Net Increase in Cash 25553 Cash at Beginning of Period 49995 Cash at End of Period 75548 Noncash Investing and Financing Activities Issuance of Common Stock for Land 44440