The comparative balance sheet of Cromme Inc for December 31

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 24,000.00

Solution

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