Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20

Question

Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Net income y Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable f Decrease in accrued expenses payable Net cash fow from operating activities Cash flows from (used for) investing activities: Cash from sale of investments Cash used for purchase of land Cash used for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Net cash fow from financing activities Increase in cash Cash at the beginning of the year

Explanation / Answer

Statement of cashflows Cashflows from operating activities: Net income 64590 Adjustment to reconcile net income to net cash flow from operating activities: Depreciation (69560-62600) 6960 Loss on sale of investments (101730-91560) 10170 Changes in current operating assets and liabilities: Increase in accounts receivable (95390-88690) -6700 Increase in inventories (269300-262580) -6720 Increase in accounts payable (179860-171290) 8570 Decrease in accrued expenses payable (22610-17890) -4720 Net cashflow from operating activities …………………a 72150 Cashflows from (used for) investing activities: Cash from sale of investment 91560 Cash used for purchase of land (138120-0) -138120 Cash used for purchase of equipment (297110-232150) -64960 Net Cashflows used for investing activities…………..b -111520 Cashflows from (used for) financing activities: Cash from sale of common stock (53660-42600)+(201720-118250) 94530 Cash used for dividends (Note:1) -38760 Net cashflows from financing activities………………c 55770 Increase in cash (a+b+c) 16400 Cash at the beginning of the year 246930 Cash at the end of the year 263330 Note:1. Beginning balance of dividend payable 7830 Add:debited to retained earnings 40870 48700 Less:Ending balance of dividend payable 9940 Dividend paid 38760

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---