CLANCY’S DOG BISCUIT CORPORATION Balance Sheet as of December 31, 2015 and 2014
ID: 2811594 • Letter: C
Question
CLANCY’S DOG BISCUIT CORPORATIONBalance Sheet as of December 31, 2015 and 2014
(in millions of dollars) Assets 2015 2014 Liabilities and Equity 2015 2014 Current assets: Current liabilities: Cash and marketable securities $ 4 $ 4 Accrued wages and taxes $ 8 $ 6 Accounts receivable 20 17 Accounts payable 16 14 Inventory 26 22 Notes payable 16 12 Total $ 50 $ 43 Total $ 40 $ 32 Fixed assets: Long-term debt: $ 26 $ 23 Gross plant and equipment $ 83 $ 64 Stockholders’ equity: Less: Depreciation 19 12 Preferred stock (2 million shares) $ 2 $ 2 Common stock and paid-in surplus Net plant and equipment $ 64 $ 52 (5 million shares) 11 11 Other long-term assets 15 15 Retained earnings 50 42 Total $ 79 $ 67 Total $ 63 $ 55 Total assets $ 129 $ 110 Total liabilities and equity $ 129 $ 110 Prepare a statement of cash flows for Clancy's Dog Biscuit Corporation. (Enter your answers in millions of dollars. Amounts to be deducted should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Statement of Cash Flows for Year Ending December 31, 2015 (in millions of dollars) A. Cash flows from operating activities (Click to select) Additions (sources of cash (Click to select) (Click to select) (Click to select) Subtractions (uses of cash (Click to select) (Click to select) Net cash flow from operating activities B. Cash flows from investing activities Subtractions (Click to select) (Click to select) Net cash flow from investing activities C. Cash flows from financing activities Additions (Click to select) (Click to select) (Click to select) Subtractions (Click to select) (Click to select) Net cash flow from financing activities D. Net change in cash and marketable securities
Explanation / Answer
cash flow statement-Indirect method
cash flow from operating activities
net income
12
add depreciation
7
changes in working capital
increase in accounts receivable
-3
increase in inventory
-4
increase in accrued wages
2
increase in accounts payable
2
increase in notes payable
4
cash flow from operating activities
20
cash flow from investing activities
purchase of plant and equipment
-19
cash flow from investing activities
-19
cash flow from financing activities
increase in long term debt
3
payment of preferred dividend
-1
payment of common stock dividend
-3
cash flow from financing activities
-1
net cash flow during the year
0
beginning cash flow
4
year end cash flow
4
cash flow statement-Indirect method
cash flow from operating activities
net income
12
add depreciation
7
changes in working capital
increase in accounts receivable
-3
increase in inventory
-4
increase in accrued wages
2
increase in accounts payable
2
increase in notes payable
4
cash flow from operating activities
20
cash flow from investing activities
purchase of plant and equipment
-19
cash flow from investing activities
-19
cash flow from financing activities
increase in long term debt
3
payment of preferred dividend
-1
payment of common stock dividend
-3
cash flow from financing activities
-1
net cash flow during the year
0
beginning cash flow
4
year end cash flow
4