The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is
ID: 2598873 • Letter: T
Question
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
1
Dec. 31, 20Y3
Dec. 31, 20Y2
2
Assets
3
Cash
$625,680.00
$586,230.00
4
Accounts receivable (net)
228,100.00
208,850.00
5
Inventories
640,910.00
617,650.00
6
Investments
0.00
240,620.00
7
Land
328,090.00
0.00
8
Equipment
704,540.00
553,320.00
9
Accumulated depreciation-equipment
(166,310.00)
(147,840.00)
10
Total assets
$2,361,010.00
$2,058,830.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$425,280.00
$404,550.00
13
Accrued expenses payable (operating expenses)
41,990.00
52,020.00
14
Dividends payable
24,190.00
20,170.00
15
Common stock, $4 par
142,000.00
106,000.00
16
Paid-in capital: Excess of issue price over par—common stock
416,700.00
279,900.00
17
Retained earnings
1,310,850.00
1,196,190.00
18
Total liabilities and stockholders’ equity
$2,361,010.00
$2,058,830.00
Additional data obtained from an examination of the accounts in the ledger for 20Y3 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. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
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. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Livers 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
6
Changes in current operating assets and liabilities:
7
8
9
10
11
12
13
Cash flows from investing activities:
14
15
16
17
18
19
Cash flows from financing activities:
20
21
22
23
24
Cash at the beginning of the year
25
Cash at the end of the year
1
Dec. 31, 20Y3
Dec. 31, 20Y2
2
Assets
3
Cash
$625,680.00
$586,230.00
4
Accounts receivable (net)
228,100.00
208,850.00
5
Inventories
640,910.00
617,650.00
6
Investments
0.00
240,620.00
7
Land
328,090.00
0.00
8
Equipment
704,540.00
553,320.00
9
Accumulated depreciation-equipment
(166,310.00)
(147,840.00)
10
Total assets
$2,361,010.00
$2,058,830.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$425,280.00
$404,550.00
13
Accrued expenses payable (operating expenses)
41,990.00
52,020.00
14
Dividends payable
24,190.00
20,170.00
15
Common stock, $4 par
142,000.00
106,000.00
16
Paid-in capital: Excess of issue price over par—common stock
416,700.00
279,900.00
17
Retained earnings
1,310,850.00
1,196,190.00
18
Total liabilities and stockholders’ equity
$2,361,010.00
$2,058,830.00
Explanation / Answer
Livers Inc. Statement of Cash Flows For the year ended December 2013 Amount $ Operating Activities Net Income 2,11,240 Adjustments: Non-Cash adjustment: Depreciation (166310-147840) 18,470 Profit on sale of investment (279190-240620) -38,570 Taxes paid Due to changes in Working capital Due to changes in accounts receivable (208850-228100) -19,250 Due to changes in Inventories (617650-640910) -23,260 Due to changes in accounts payable (425280-404550) 20,730 Due to changes in accruals (41990-52020) -10,030 Net Cash provided (used) by operating activities 1,59,330 Investing Activities Cash used to acquire equipment (553320-704540) -1,51,220 Cash from sale of investment 2,79,190 Cash used to purchase of land -3,28,090 Net cash provided (used) by investing activities -2,00,120 Financing Activities Due to change in common stock (142000+416700-106000-279900) 1,72,800 Payment of common dividends (96580-(24190-20170)) -92,560 Net cash provided (used) by investing activities) 80,240 Net increase/decrease in cash 39,450 Add: Cash balance at the begining of the year 5,86,230 Cash balance at the end of the year 6,25,680