under the indireet lllelnouT e company The following informa

under the indireet lllelnou.T e company The following information relates to Dunwoody Nursery&Garden; Center, Inc. The c erther leases a building adjacent to its land. DUNWOODY NURSERY &GARDEN; CENTER, INC. Comparative Balance Sheets December 31, 2013 and 2012 2013 2012 Assets Cash Accounts receivable, net Merchandise inventory Equipment Accumulated depreciation-equipment Land Total assets $44,500 52,000 59,000 60,000 175,000 120,000 412,500 315,000 (120,000) (105,000) 75,000 15,000 -$646,000 457,000- Liabilities and Stockholders\' Equity Accounts payable Accrued liabilities payable Capital stock-common-$10 par Paid-in capital in excess of par Retained earnings Total liabilities and stockholders\' equity $43,750 $40,750 2,250 3,750 375,000 300,000 150,000 75,000 75,00037,500 $646,000 $457,000

Solution

Cash flow statement

Cash flow from operating activities

net income 97500

add: Depreciation 30000

less: gain on sales (3750)

123750

decrease in accounts receivable 1000

increase in inventory (55000)

Increase in accounts payable 3000

decrease in accrued liabilities payable (1500)

Net Cash provided by operating activities 71250

Cash flow from financing activities

cash dividend (60000)

proceed from common stock 150000

Net Cash provided by financing activities 90000

Cash flow from investing activities

purchase of land (60000)

sale of equipment 3750

purchase of equipment    (112500)

Net Cash used by investing activities (168750)

Net decrease in cash (7500)

add: cash at beginning    52000

Cash at end 44500

Note:-      Equipment

To Balance b/d	315000	By Assets disposal	15000
To cash	112500	By Balance c/d	412500
Accumulated depreciation
To Assets disposal	15000	By Balance b/d	105000
To Balance c/d	12000	By Depreciation	30000
Assets disposal
To equipment	15000	By cash	3750
To gain on sales	3750	By Accumulated depreciation	15000