Please solve this problem Exercise 12-6 The following three accounts appear in t

Question

Please solve this problem

Exercise 12-6 The following three accounts appear in the general ledger of Flint Corporation during 2017 Equipment Date Jan. 1 Balance uly 31 Purchase of equipment Sept. 2 Cost of equipment constructed Nov 10 Debit Credit Balance 321,280 461,840 568,264 98,392 469,872 140,560 106,424 Cost of equipment sold Accumulated Equipment Date Jan. 1 Nov 10 Dec. 31 Balance Accumulated depreciation on equipment sold Depreciation for year Debit Credit Balance 142,568 110,440 56,224 166,664 32,128

Explanation / Answer

The cash flow statement is as below:

Particulars Amt ($) Amt ($) Cash flow from operating activities Net Income 144576 Adjustment to reconcile net income Add: Loss on disposal of pant assests 16064         : Depreciation expense 56224 72288 Cash flow from operating activities 216864 Cash flow from investing activities Purchase of equipment -140560 Cost of equipment constructed -106424 Proceeds from sale of equipment ($98392-$16064) 82328 Cash flow from investing activities -164656 Cash flow from financing activities Dividend paid -28112 Cash flow from financing activities -28112 Net Increase in cash 24096

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