Acc 2020-Statement of Cash Flow Take Home Quiz Name: The Pebble Co. Comparative
ID: 2561815 • Letter: A
Question
Acc 2020-Statement of Cash Flow Take Home Quiz Name: The Pebble Co. Comparative Balance Sheet as of ssets: 12/31/2016 12/31/2015 S 140,350 95.900 Accounts receivable (net) Inventories Prepaid expenses Long-term investments 95,300 5 880 75,000 375,000 90,000 Accum. depreciation-Bldgs Accum depreciation- Eapt 428,300 (148,500)(138,000) 428,300 Patents otals Assets S 1,159,290 S 1,093,660 iabilities and Stockholders' Equity Accounts payable S 43,500 $ 46,700 Income tax payable Dividend payable Mortgage note payable Bonds payable Common stock Paid in capital over par value 14,000 7,900 14,000 40,000 150,000 450,000 12.500 10,000 250,000 375,000 349,810 tal Liabilities and Stockholders' Equity $ 1,159,290 $ 1,093,660 ·Over- Pebble CoExplanation / Answer
1. The Pebble Co.
Statement of Cash Flows ( Indirect Method)
For the year ended December 31, 2016
2. The Pebble Co.
Statement of Cash Flows ( Direct Method)
For the year ended December 31, 2016
Workings:
Accounts Receivable :
Inventories:
Accounts Payable
Accrued Expenses
$ $ Cash Flows from Operating Activities Net Income 98,500 Adjustments to reconcile net income to net cash flows from operating activities Depreciation Expense 23,500 Patent Amortization 7,000 Interest Expense 26,000 Gain on sale of Investments (11,000) 45,500 Operating profit before working capital changes 144,000 Decrease in accounts receivable 7,000 Increase in inventories (7,300) Increase in prepaid expenses (380) Decrease in accounts payable (3,200) Increase in accrued expenses 1,500 Decrease in income tax payable (500) (2,880) Net cash flows from Operating Activities 141,120 Cash Flows from Investing Activities Sale proceeds of land 15,000 Sale proceeds of investments 60,000 Cash paid for construction of building (115,000) Net cash used in Investing Activities (40,000) Cash Flows from Financing Activities Issuance of mortgage note payable 40,000 Interest paid (26,000) Dividends paid (70,670) Net cash used in Financing Activities (56,670) Increase in cash and cash equivalents 44,450 Cash balance, December 31, 2015 95,900 Cash balance, December 31, 2016 140,350