Problem 12-11A The comparative balance sheets for Marigold Corp. as of December
ID: 2588146 • Letter: P
Question
Problem 12-11A
The comparative balance sheets for Marigold Corp. as of December 31 are presented below.
Marigold Corp.
Comparative Balance Sheets
December 31
Assets
2017
2016
$ 96,628
$ 63,945
71,050
82,418
215,210
201,782
21,713
29,841
206,045
184,730
284,200
284,200
(85,260
)
(56,840
)
319,725
220,255
(63,945
)
(49,735
)
$1,065,366
$960,596
Liabilities and Stockholders’ Equity
$ 63,561
$ 51,156
426,300
426,300
284,200
227,360
291,305
255,780
$1,065,366
$960,596
Additional information:
Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Adjustments to reconcile net income to
Your answer is partially correct. Try again.Explanation / Answer
Statement of cash flow cash from operating activities Net income for the year 52,577 Adjustments to reconcile net income Depreciation expense 59,682 loss on sale of Equipment 2842 Decrease in account receivable 11368 increase in inventory -13428 Decrease in prepaid expense 8128 increase in accounts payable 12405 cash from operating activities 133,574 133,574 Cash from investing activities Cash from sale of land 35,525 cash from sale of Equipment 11,368 cash paid for purchase of Equipment -130,732 Cash used by investing activities -83,839 -83,839 Cash from financing activities cash dividend -17,052 Cash used by financing activities -17,052 Net increase in cash 32,683 cash at beginning 63,945 cash at year end 96,628