Instructions Dec. 31,2016 Dec. 31,2015 Assets 3Cash 4Accounts receivable (net) 5
ID: 2567504 • Letter: I
Question
Instructions Dec. 31,2016 Dec. 31,2015 Assets 3Cash 4Accounts receivable (net) 5Merchandise inventory 6 Prepaid expenses 7Equipment 8Accumulated depreciation-equipment 9Total assets $146,480.00 $179,640.00 41,920.00 298,870.00 10,420.00 537900.00 (169,970.00) 133,130.00) 1,190,530.00 $1,135,620.00 225,010.00 321,600.00 13,030.00 654,380.00 Liabilities and Stockholders' Equity 10 11 Accounts payable (merchandise creditors) 12 Mortgage note payable 13 Common stock, $10 par 14 Paid-in capital: Excess of issue price over par-common stock 15 Retained earnings 16 Total liabilities and stockholders' equity 250,960.00 $236,720.00 335,410.00 25,000.00 310,000.00 228,490.00 1,190,530.00 $1,135,620.00 0.00 75,000.00 440,000.00 424,570.00Explanation / Answer
Statement of Cash flow using Indirect Method Cash flow from Operating Activities Net Income $348,560 Depreciation $82,480 Adjusments relating to working capital items Decrease in Accounts Receivable $16,910 Increase in merchandise inventory -$22,730 Increase in prepaid expenses -$2,610 Increase in Accounts Payable $14,240 Net Cash Available from Operating activities $436,850 Cash flow from Investing Activities Purchase of equipment -$162,120 Net cash used for Investing activities -$162,120 Cash flow from Financing activities Repayment of Mortgage note payable -$335,410 Issue of Common stock $180,000 Dividend paid -$152,480 Net Cash used for Financing activities -$307,890 Net Cash surplus / (deficit) -$33,160 Add: Beginning Cash balance as on 1.1.2016 $179,640 Ending cash balance as on Dec.31,2015 $146,480