Please ignore the handwritten work. Need help ASAP. Add notes to your work if po
ID: 2585822 • Letter: P
Question
Please ignore the handwritten work. Need help ASAP. Add notes to your work if possible. THANK YOU
Statement of Cash Flows Handout Data for Ilustrative Problem: Assume that the records of the Wolverine Company revealed the following information: Wolverine Company COMPARATIVE BALANCE SHEET December 31 Cash and cash equivalents Marketable equity securities Accounts receivable (net) $49,400 7,300 49,320 48,590 67,100 18,700 79,100 81,500 $25,300 16,500 24,320 31,090 61,220 40,000 79,100 $24,100 (9,200) 25,000 17,500 5,880 (21,300) Investment in 30% owned company Land Building Equipment Less: Accumulated depreciation Total 81,500 (16.250) 15,000 $384.760 S262.530 $122.230 $17,330 $21,.220 ($3,890) Accounts payable Income taxes payable Bonds payable Less: Unamortized discount Deferred tax liability 4,616 115,000 (2,150) 846 4,616 65,000 150 336 50,000 (2,300) 510 (30,000) 30,000 Preferred stock Common stock Retained earnings Total 30,000 80,000 83,100 $384 760 $262,530 $122.230 110,000 56,018 Wolverine Company INCOME STATEMENT DATA For the Year Ended December 31, 2018 Sales Gain on sale of marketable equity securities Equity in earnings of 30% owned company Gain on sale of land $242,807 2,400 5,880 $261,787 Cost of sales General and administrative expense Depreciation Interest expense Income taxes Net income 22,010 1,250 1,150 34.952 197.769Explanation / Answer
Cash flow indirect method Cash flow from operating activities Cash flow from Financing activities Net income 64018 Adjustments to reconcile the net income Bonds payable 65000 Deferred tax 336 Depreciation expense 1250 Cash dividend -8000 Gain on sale of marketable secuirties -2400 Equity in earning of 30% -5880 Gain on sale of land -10700 Unamortized amount 150 Cash flow from Financing activities 57000 Changes in current asset and liabilities Increase in accounts receivable -25000 Net Cash and cash equivalent 24100 Increase in Inventory -17500 Add Beginning cash and cash equivalent 25300 Ending cash and cash equivalent 49400 Decrease in accounts payable -3890 Increase in income tax payable 4616 -59018 Cash flow from operating activities 5000 Cash flow from Investing activities Sales of land 32000 Purchase of Equipment -81500 Sales of marketable equity securities 11600 Cash flow from Investing activities -37900