The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is
ID: 2611498 • Letter: T
Question
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as follows Dec. 31, 2016 Dec. 31, 2015 Assets $625,760.00$85,920.00 208,960.00 617,12000 0.00 240,000.00 0.00 553,120.00 (166,400.00) (148,000.00) $2,362,080.00 $2,057,120.00 3 Cash 4 Accounts receivable (net) 5 Inventories 6 Investments 227,840.00 641,760.00 Land 8 Equipment 9 Accumulated depreciation-equipment 10 Total assets 328,000.00 705,120.00 Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) 13 Accrued expenses payable (operating expenses) 14 Dividends payable 15 Common stock, $4 par t6 Paid-in capital: Excess of issue price over par-common stock $424,480.00 $404,960.00 52,640.00 19,20000 150,00000 100,00.0 417,500.00 280,000.00 42,240.00 24,000.00Explanation / Answer
Cromme Inc
Statement of Cash flow
For the year ended Dec 31, 2016
Particulars
Amount in $
Amount in $
Cash flow from operating activities
Net Income
199,540
Adjustment for:
Depreciation
18,400
Gain on Sale on Investment (W.N 1)
-40,000
-21,600
Increase in Account Receivable (net)
-18,880
Increase in Inventory
-24,640
Increase in Accounts payable (Merchandise Creditors)
19,520
Decrease in Accrued expenses payable ( operating expenses)
-10,400
-34,400
A. Cash Generated from Operating Activities
143,540
Cash Flow From Investing Activities
Proceeds from sale of Investment
280,000
Purchase of Land
-328,000
Purchase of Equipment
-152,000
B. Net Cash Used in Investing Activity
-200,000
Cash Flow From Financing Activity
Proceeds from issuance of Common stock
50,000
Proceeds from paid in capital : excess of price over par
137,500
Dividend Paid (W.N 2)
-91,200
C. Net Cash generated from financing activity
96,300
D. Net increase in cash and cash equivalent (A+B+C)
39,840
E. Cash and Cash Equivalent at the beginning of year
585,920
F. Cash and Cash Equivalent at the end of year (D+E)
625,760
W.N.1 (Amount in $)
Proceeds from sale of Investment
280,000
Less : Investment As on Dec 31, 2015
-240,000
Gain/ (Loss) from sale of Investment
40,000
W.N.2 (Amount in $)
Dividend Payable as on Dec 31, 2015
19,200
Add: Dividend Declared
96,000
Less: Dividend Payable as on Dec 31, 2016
-24,000
Cash Dividend paid during the year
91,200
Particulars
Amount in $
Amount in $
Cash flow from operating activities
Net Income
199,540
Adjustment for:
Depreciation
18,400
Gain on Sale on Investment (W.N 1)
-40,000
-21,600
Increase in Account Receivable (net)
-18,880
Increase in Inventory
-24,640
Increase in Accounts payable (Merchandise Creditors)
19,520
Decrease in Accrued expenses payable ( operating expenses)
-10,400
-34,400
A. Cash Generated from Operating Activities
143,540
Cash Flow From Investing Activities
Proceeds from sale of Investment
280,000
Purchase of Land
-328,000
Purchase of Equipment
-152,000
B. Net Cash Used in Investing Activity
-200,000
Cash Flow From Financing Activity
Proceeds from issuance of Common stock
50,000
Proceeds from paid in capital : excess of price over par
137,500
Dividend Paid (W.N 2)
-91,200
C. Net Cash generated from financing activity
96,300
D. Net increase in cash and cash equivalent (A+B+C)
39,840
E. Cash and Cash Equivalent at the beginning of year
585,920
F. Cash and Cash Equivalent at the end of year (D+E)
625,760