The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is
ID: 2565021 • Letter: T
Question
The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets $625,680.00 $586,23000 208,85000 617,650.00 240,620.00 0.00 553,320.00 16631000) 147,84000) $2,361,010.00 $2,058,830.00 s Cash 4 Accounts receivable (net) s Inventories Investments 7 Land 1 Equipment 228,100.00 640,910.00 0.00 328,09000 704,54000 Accumulated depreciation- equipment 10 Total assets Liabiluties and Stodholders Equity 404,550.00 52,02000 20,170.00 106,000.00 279,900.00 1,310,85000 1,196190.00 2,361,010.00 $,058,83000 $425,280.00 $ 12 Accounts payable s Accrued expenses payable 4 Dividends payable 15 Common stock, $4 par 16 Paid-in capital: Excess of issue price over par-common stock 7 Retained eamings t Total liabilities and stockholders equity 41,990.00 24,190.00 142,000.00 416,700.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: A. The investments were sold for $279,190 cash. B. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year D. The common stock was issued for cash. E. There was a $211,240 credit to Retained Earnings for net income. F. There was a $96,580 debit to Retained Eamings for cash dividends declared.Explanation / Answer
Navaria Inc. Statement of Cash Flows For the year ended Dec 31, 20Y3 Amount $ Operating Activities Net Income 2,11,240 Adjustments: Non-Cash adjustment: Depreciation (166310-147840) 18,470 Gain on sale of investments (240620-279190) -38,570 Due to changes in Working capital Due to changes in accounts receivable (208850-228100) -19,250 Due to changes in Inventories (617650-640910) -23,260 Due to changes in accounts payable (425280-404550) 20,730 Due to changes in accruals (41990-52020) -10,030 Net Cash provided (used) by operating activities 1,59,330 Investing Activities Cash used to acquire Land -3,28,090 Cash used to acquire equipment (553320-704540) -1,51,220 Due to change in short-term investments 2,79,190 Net cash provided (used) by investing activities -2,00,120 Financing Activities Due to change in common stock (142000+416700-106000-279900) 1,72,800 Payment of common dividends (20170+96580-24190) -92,560 Net cash provided (used) by investing activities) 80,240 Net increase/decrease in cash 39,450 Add: Cash balance at the begining of the year 5,86,230 Cash balance at the end of the year 6,25,680