The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y
ID: 2590611 • Letter: T
Question
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
1
Dec. 31, 20Y8
Dec. 31, 20Y7
2
Assets
3
Cash
$80,000.00
$100,000.00
4
Accounts receivable (net)
275,000.00
300,000.00
5
Inventories
510,000.00
400,000.00
6
Prepaid expenses
15,000.00
10,000.00
7
Equipment
1,070,000.00
750,000.00
8
Accumulated depreciation-equipment
(200,000.00)
(160,000.00)
9
Total assets
$1,750,000.00
$1,400,000.00
10
Liabilities and Stockholders’ Equity
11
Accounts payable (merchandise creditors)
$100,000.00
$90,000.00
12
Mortgage note payable
0.00
400,000.00
13
Common stock, $10 par
600,000.00
200,000.00
14
Paid-in capital: Excess of issue price over par—common stock
300,000.00
100,000.00
15
Retained earnings
750,000.00
610,000.00
16
Total liabilities and stockholders’ equity
$1,750,000.00
$1,400,000.00
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Enter amounts that represent cash outflows as negative numbers using a minus sign.
Labels and Amount Descriptions
Statement of Cash Flows
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Enter amounts that represent cash outflows as negative numbers using a minus sign.
Yellow Dog Enterprises Inc.
Statement of Cash Flows
1
Cash flows from operating activities:
2
3
Adjustments to reconcile net income to net cash flow from operating activities:
4
5
Changes in current operating assets and liabilities:
6
7
8
9
10
11
12
Cash flows from investing activities:
13
14
15
16
Cash flows from financing activities:
17
18
19
20
21
22
Cash at the beginning of the year
23
Cash at the end of the year
Please answer questions by using excel. Thanks!
1
Dec. 31, 20Y8
Dec. 31, 20Y7
2
Assets
3
Cash
$80,000.00
$100,000.00
4
Accounts receivable (net)
275,000.00
300,000.00
5
Inventories
510,000.00
400,000.00
6
Prepaid expenses
15,000.00
10,000.00
7
Equipment
1,070,000.00
750,000.00
8
Accumulated depreciation-equipment
(200,000.00)
(160,000.00)
9
Total assets
$1,750,000.00
$1,400,000.00
10
Liabilities and Stockholders’ Equity
11
Accounts payable (merchandise creditors)
$100,000.00
$90,000.00
12
Mortgage note payable
0.00
400,000.00
13
Common stock, $10 par
600,000.00
200,000.00
14
Paid-in capital: Excess of issue price over par—common stock
300,000.00
100,000.00
15
Retained earnings
750,000.00
610,000.00
16
Total liabilities and stockholders’ equity
$1,750,000.00
$1,400,000.00
Explanation / Answer
Solution:
Here you go..
Yellow Dog Enterprises Inc.
Cash Flow Statement (Indirect Method)
For the Year Ended December 31, 20Y8
Cash Flow from Operating Activities:
$$
$$
Net Income
$190,000
Adjustments to reconcile net income to net cash flow from operating activities:
+
Depreciation (Non cash item)
$115,000
Changes in current operating assets and liabilities:
+
Decrease in Accounts Receivable (300,000 - 275,000)
$25,000
-
Increase in Inventory (510,000 - 400000)
-$110,000
-
Increase in Prepaid Expenses (15,000 - 10,000)
-$5,000
+
Increase in Accounts Payable (100,000 - 90,000)
$10,000
Net cash flow from operating activities
$225,000
Cash Flow from Investing Activities:
-
Cash paid for purchase of equipment
-$395,000
Net cash flow used for investing activities
-$395,000
Cash Flow from Financing Activities:
+
Cash received from sale of common stock (40,000 Shares x $15)
$600,000
-
Cash paid to retire mortgage note payable
-$400,000
-
Cash paid for dividends
-$50,000
Net cash flow from financing activities
$150,000
Change in cash
-$20,000
Cash at the beginning of the year
$100,000
Cash at the end of the year
$80,000
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Yellow Dog Enterprises Inc.
Cash Flow Statement (Indirect Method)
For the Year Ended December 31, 20Y8
Cash Flow from Operating Activities:
$$
$$
Net Income
$190,000
Adjustments to reconcile net income to net cash flow from operating activities:
+
Depreciation (Non cash item)
$115,000
Changes in current operating assets and liabilities:
+
Decrease in Accounts Receivable (300,000 - 275,000)
$25,000
-
Increase in Inventory (510,000 - 400000)
-$110,000
-
Increase in Prepaid Expenses (15,000 - 10,000)
-$5,000
+
Increase in Accounts Payable (100,000 - 90,000)
$10,000
Net cash flow from operating activities
$225,000
Cash Flow from Investing Activities:
-
Cash paid for purchase of equipment
-$395,000
Net cash flow used for investing activities
-$395,000
Cash Flow from Financing Activities:
+
Cash received from sale of common stock (40,000 Shares x $15)
$600,000
-
Cash paid to retire mortgage note payable
-$400,000
-
Cash paid for dividends
-$50,000
Net cash flow from financing activities
$150,000
Change in cash
-$20,000
Cash at the beginning of the year
$100,000
Cash at the end of the year
$80,000