Problem 13-23 Kate atusky Pre ard vanho cant als balance sheet and incame statem
ID: 2595542 • Letter: P
Question
Problem 13-23 Kate atusky Pre ard vanho cant als balance sheet and incame statement or 2 16 Be are shc could co alete the state ont cash w s she had ta eave to n to attend to a family cmergency. Bacause thc ull set of state nn s must be pravidcd to the auditars toda , Ivanhoe's president, Lance Meyers has asked you t roane t statement o cash fows. Meyers has provided ynu with the naar oe shects and incame statmentthat Perusky pre and as wel as same nates she made: vanhe Controls Income Statement For the Year Ended December 31, 2016 129,700 0,410 Cast of gouds sold Gross margin Selling expense Administrative expense Salanes cxpcns Deprediation excense Interest expense Incorme berore gain and texes Gain an sale of Land Incorne tax expense $13,450 8,430 Net income 10,744 Ivanhoc Controls Comparative Balance Sheets As of December 31 2016 2015 5,370 4,250 6,320 5,550 31,900 34,230 3,590 44,030 211,590 215,480 255,28D $259,510 $ 3,460 5,93) 2,44D 2,24D 2,200 2,900 60,160 50,280 Acccunts receivable, net Total current assets Property, piant,& oquipment, net Total Assets Acccunts payable Accruad expeses Taxes payable Bords payable Total iabilities Common stock Retained earnings 370 125,370 61,SD 2,79D 187,020 198,160 $255,280 $259,510 Total stockholder equity Total liabilities & stockholders' equity Equipment with an originel cost or $35,140 vas sold for $20,573. The book value of the equipment was $19,630. .On Jurne 1, 2013, the company purchased new equipment for cash at a cost af $17,930 At the end of the year the company issued honds payahle for $9,88 cash. The honds will mature on Docember 31, 2017. . The company paid $21,884 in cash dividends for the year Using the indirect method, prepare Ivanhoe Controls' statement of cash fows for 2016. (Show amounts that decrease cash flow with either a -sign,e.g.-15,000 or in parentheses, e.g.(15,000))Explanation / Answer
Cash flow indirect method Cash flow from operating activities Net income 10744 Adjustments to reconcile the net income Gain on sale of land -943 Depreciation expense 1990 Changes in current asset and liabilities Increase in accounts receivable -770 Decrease in Inventory 2330 Decrease in accounts payable -2470 Increase in Accrued expense 200 Decrease in taxes payable -700 -363 Cash flow from operating activities 10381 Cash flow from Investing activities Sales of equipment 20573 Purchase of Equipment -17830 Cash flow from Investing activities 2743 Cash flow from Financing activities Bonds payable 9880 Cash dividend -21884 Cash flow from Financing activities -12004 Net Cash and cash equivalent 1120 Add Beginning cash and cash equivalent 4250 Ending cash and cash equivalent 5370