Problem 1328 Part Level Submission ecouse the full set of st

Problem 13-28 (Part Level Submission) ecouse the full set of state e ts must be pronded to theev tors today Addison\'s president, Lance Meyers Kate petusky pre red Addson ontrols balance 5 eet nd income t ter ent for 2016 e ore 5he could cem plete the 5 te ent cash ows, 5he hed to leave to to etter d to nnly emergency has asked you ta prepare the statement of eash flaws. Neyers has provided you with the balarce sheet and incame stat ment that Ptusky prepared, well as some nates she made For the Year Ended December 31, 2016 Ceat of goods sold Gross margin Selling xpanes Administrative expense Selaries expense Intereat panse ncome before gain and taxs 4,000 46,90 Income tax cense Balance Sheets As of December 31 $5,100 4.300 Account reccivable, net 1,700 34,200 43,100 44,000 211,500 215,300 $254,600 $259,300 $3.400 5,900 Property, plent, &equipment;, he Accounts payable Accrued txpere Salares payable Taxes payale Bonds poyable 2,100 2,600 G0,Co SO,0D0 67,900 60,700 125,C00 125,000 61,700 73,6DO 186,700 198,6D0 Tetal liabilities & stockholders\' equity $254,600 259,300 Total libilities Cemmon sock Rctained carning: Total stockholders aquity . Equipment with a, iginal ease of $35,000 was seld for S20,300. The book value af the equipment was $19,400. +CnJune 1, 20L6, the company purchased new cquipment tor cash at o cos: ot $17,500 * AL teed ùf the Year, the company issued bonds payable for10,000sh. The bends wil matur an December 31, 2020. The compey paid $23,200 in cash dividends for the year.

Solution

Addison Controls Statement of Cash Flows (Indirect Method) For the Year ended Dec 31, 2016 Cash Flow from opearating activities: Net Income              11,300 Add/(Less) non cash effects on operating activities Depreciation expense - Plant & Equipment              1,900 Gain on Sale of Land               (900) Increase in Accounts Receivables               (800) Decrease in Inventory              2,500 Decrease in Accounts Payables           (2,500) Increase in Accrued Liabilities                 200 Decrease in Income Tax Payable               (500)                  (100) Net Cash provided by operating activities              11,200 Cash flow from Investing Activities Purchase of Equipment         (17,500) Sale of Equipment           20,300 Net Cash provided by Investing activities                 2,800 Cash Flow from Financing Activities Issue of Bonds           10,000 Cash dividend paid         (23,200) Net Cash used by Financing activities            (13,200) Net Increase / (Decrease) in Cash                    800 Cash balance at the beginning - Dec 31, 2015                 4,300 Cash balance at the end - Dec 31, 2016.                 5,100