The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 a
ID: 2583328 • Letter: T
Question
The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows Dec.31,2016 Dec.31,2015 Assets 3Cash 4Accounts receivable (net) 5 Merchandise inventory 6 Prepaid expenses 7 Equipment 8 Accumulated depreciation-equipment 9 Total assets $180,110.00 241,890.00 299,730.00 10,220.00 537,200.00 (132,040.00) $1,189,430.00 $1,137,110.00 $145,630.00 224,520.00 321,860.00 12,550.00 655,090.00 (170,220.00) 10 Liabilities and Stockholders' Equity 11 Accounts payable (merchandise creditors) $250,110.00 $237,190.00 12 Mortgage note payable 0.00 335,380.00Explanation / Answer
Statement of cash flow :
Cash flow from operating activities Net income 339360 Adjustment to reconcile net income Depreciation expenses 82730 Changes in current assets & Liabilities Decrease account receivable 17370 Increase inventory (22130) Increase prepaid expenses (2330) Increase account payable 12920 Net cash flow from operating activities 427920 Cash flow from investing activities Purchase of equipment (162440) Net cash flow from investing activities (162440) Cash flow from financing activities Issue common stock 190000 Dividend paid (154580) Repaid mortgage payable (335380) Net cash flow from financing activities (299960) Net cash flow (34480) Beginning cash 180110 Ending cash 145630