ROTHLISBERGER COMPANY Comparative Balance Sheets December 31

ROTHLISBERGER COMPANY
Comparative Balance Sheets
December 31

Assets

2017

2016

$59,900

$46,500

43,400

62,100

148,100

145,600

15,000

24,600

96,500

130,300

198,700

198,700

(56,200

)

(31,200

)

230,300

156,600

(44,300

)

(36,200

)

$691,400

$697,000

Liabilities and Stockholders’ Equity

$46,200

$39,000

260,000

291,200

189,500

158,300

195,700

208,500

$691,400

$697,000

The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. ROTHLISBERGER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $59,900 $46,500 Accounts receivable 43,400 62,100 Inventory 148,100 145,600 Prepaid expenses 15,000 24,600 Land 96,500 130,300 Buildings 198,700 198,700 Accumulated depreciation—buildings (56,200 ) (31,200 ) Equipment 230,300 156,600 Accumulated depreciation—equipment (44,300 ) (36,200 )    Total $691,400 $697,000 Liabilities and Stockholders’ Equity Accounts payable $46,200 $39,000 Bonds payable 260,000 291,200 Common stock, $1 par 189,500 158,300 Retained earnings 195,700 208,500    Total $691,400 $697,000 Additional information: 1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $9,600. 2. Land was sold for cash at book value. 3. Cash dividends of $58,100 were paid. 4. Net income for 2017 was $45,300. 5. Equipment was purchased for $95,300 cash. In addition, equipment costing $21,600 with a book value of $12,700 was sold for $5,900 cash. 6. Bonds were converted at face value by issuing 31,200 shares of $1 par value common stock. Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The comparative balance sheet 148, 100345,400 ($8,200) 230.300 [31.2007 46,20083.000 260,00029 1121 499 19800

Solution

Statement of cash flows for the year ended Dec.31,2017 using indirect method Cash flows from operating activities Net Income $45,300 Depreciation Expense $42,000 Loss on sale of equipment $6,800 Decrease in Accounts Receivables $18,700 Increase in Inventory -$2,500 Decrease in prepaid expenses $9,600 Increase in Accounts Payable $7,200 $81,800 Net Cash available from Operating activities $127,100 Cash flows from Investing activities Sale of land $33,800 Purchase of equipment -$95,300 Sale of equipment $5,900 Net cash used for Investing activities -$55,600 Cash flows from Financing activities Dividend paid -$58,100 Net Cash used for Financing activities -$58,100 Net Cash Surplus / (deficit) $13,400 Add : Beginning Cash balance 2016 $46,500 Ending Cash balance 2017 $59,900