Problem 16-3B Calculating cash flows (indirect method) LO5,6 CHECK FIGURE: Cash

Question

Problem 16-3B Calculating cash flows (indirect method) LO5,6 CHECK FIGURE: Cash inflow from operating activities $22,800 Burrow Mining Inc.'s comparative balance sheet information at December 31, 2017, and 2016, and its income statement for the year ended December 31, 2017, are as follows Burrow Mining Inc. Income Statement Year Ended December 31, 2017 Sales Cost of goods sold. Gross profit Operating expenses 77,920 Depreciation expense. Profit from Operations Loss on sale of equipment.. 504,000 336,000 168,000 24,080 102,000 66,000 2,240 6,720 70,480 10,000 60,480 Click here for a description of Table: Problem 16-3B, Income Statement

Explanation / Answer

Retained Earning at the Beginning 48160 Add Net Income 60480 Less Retained Earning at the end 80640 Dividend Declared 28000 Add Dividend Payable beginning 800 Less Dividend Payable end 400 Dividend Paid 28400 Cash Flow Statement Indirect Method Net Income 60480 Add Loss on Sales of Equipment 2240 Less Investment Income -6720 Add Depreciation 24080 Change in working Capilta Less Increase inAccount Receivable -29680 Less Increase in Inventory -17920 Less Decrease in Account Payable -9680 Cash Flow from Operating Activities 22800 Cash Flow From Investment Activities Sales of Investment 16800 Purchase of equipment -11200 Sales of Equipment 3920 Cash Flow From Investment Activities 9520 Cash Flow From Financing Activities Issue of Bond 14000 Dividend Paid -28400 Cash Flow From Financing Activities -14400 Increase in cash Flow 17920 Add Begining Cash And Cash Equivalents 20160 Ending Cash and Cash Equivalents 38080

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---