Prepare a Cash Flow Statement Balance Sheet: 2004 2005 Current Assets Incr (Decr
ID: 2570870 • Letter: P
Question
Prepare a Cash Flow Statement Balance Sheet: 2004 2005 Current Assets Incr (Decr) Cash Accounts Receivable Inventories $36,000 $49,500 $13,500 31,875 $31,875 (S6,075) %39,300 34,200 28,125 Total current assets 70,200 109,500 Noncurrent Assets Land Buildings Equipment Patent Accumulated depreciation S0 SO 10,800 10,800 72,000 116,250 S44,250 43,200 50,875 $7,675 SO ($2,175) 122,400 172,150 $49,750 3,600 3,600 (7,200) (9,375) Total noncurrent assets 192,600 281,650 $89,050 $0 S0 $36,000 $18,750 ($17,250) Total Assets Current Liabilities Accounts payable to suppliers Income taxes payable - 7,500 $7,500 _ Total current liabilities 36,000 26,250 ($9,750) SO $21,750 $12,000 Noncurrent Liabilities Long term debt 72,000 93,750 Total liabilities 108,000 120,000 $0 Shareholders' Equity Common Stock Retained Earnings 84,600 122,625 $38,025 39,025 $39,025 8460 161.65 $7,050 Total shareholders' equity $77,050 Total Liabilities and Shareholders Equity $192,600 281,650 $89,050Explanation / Answer
Statement of Cash Flows (indirect method) Amount $ Operating Activities Net Income 53,025 Adjustments: Non-Cash adjustment: Depreciation 2,175 Provision for tax 30,000 Due to changes in Working capital Due to changes in accounts receivable -31,875 Due to changes in Inventories 6,075 Due to changes in accounts payable -17,250 Tax paid (30000-75000) -22,500 Net Cash provided (used) by operating activities 19,650 Investing Activities Cash used to acquire building -44,250 Cash used to acquire Equipment -7,675 Net cash provided (used) by investing activities -51,925 Financing Activities Due to change in notes payable Due to change in long-term debt 21,750 Due to change in common stock 38,025 Payment of common dividends -14,000 Net cash provided (used) by investing activities) 45,775 Net increase/decrease in cash 13,500 Add: Cash balance at the begining of the year 36,000 Cash balance at the end of the year 49,500