Problem 1311A The comparative balance sheets for Rothlisberg

Problem 13-11A The comparative balance sheets for Rothlisberger Company as of December 31 are precented below. ROTHLISBERGER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 2016 2017 $59,900 43,400 $46,500 62,100 148,100 145,600 24,600 96,50030,300 198,700 15,000 198,700 (56,200) (31,200) 230,300156,600 44,300 Total Liabilities and Stockholders\' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings $691,400 $697,000 $46,200 39,000 291,200 189,500 158,300 260,000 195,700 208,500 697.000 195 100 Total 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 flo

Solution

Rothlisberger Company Cash flow Statements for the year ended Dec 31,2017 Cash Flow from Operating Activities Net Profits 45300 Building Account Add: Loss on Disposal of Equipment 6800 To Bal bd 198700 Add: Depreciation 42000 Add: Prepaid Expenses(Non Cash Expense) 9600 Original Cost 21600 By Bal cd 198700 Book Value 12700 Cash Flow before WC Changes 103700 Total 198700 Total 198700 Accumlated Deprecition on Sold 8900 Sales Value 5900 Add: Decreae in CA Accumulated Dep Account-Building Loss on Disposal -6800 Prepaid Expenses - By Bal bd 31200 Account Recievables 18700 By Depreciation 25000 Less: Decrease in CL (BF) To Bal cd 56200 Common Stock Closing 189500 Add: Increase in CL Total 56200 Total 56200 Common Stock Opening 158300 Account Payable 7200 Net Increase-A 31200 Less: Increase in CA Inventory -2500 Cash Flow After WC Changes 127100 Bonds Closing 260000 Bonds Opening 291200 Cash Flow from Operating Activities 127100 Net Increase-B -31200 Cash Flow from Investing Activities Equipment Account Net Cash Impact(A+B) 0 Purchase of Equipment -95300 To Bal bd 156600 By Sales 21600 Sales of Equipment 5900 To Purchases 95300 Sales of Land 33800 Cash Flow from Investing Activities -55600 By Bal cd 230300 Total 251900 Total 251900 Cash Flow from Financing Activities Accumulated Dep Account-Equipment Issue of Bonds 0 To Sales 8900 By Bal bd 36200 Dividend Paid -58100 By Depreciation 17000 (BF) Cash Flow from Financing Activities -58100 To Bal cd 44300 Total 53200 Total 53200 Net Cash Flow Inflow 13400 Opening Cash Balance 46500 Land Account Closing Cash Balance 59900 (Tally with BS) To Bal bd 130300 By Sales 33800 By Bal cd 96500 Total 130300 Total 130300