Data Table More Info a Acquisition of plant assets is 121000

Data Table More Info a. Acquisition of plant assets is $121,000. Of this amount, $102,000 is paid in cash Boost Plus, Inc. Income Statement Year Ended September 30, 2016 and S19,000 by signing a note payable Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: $ 230,000 90,000 140,000 b. Cash receipt from sale of land totals $21,000. There was no gain or loss. c. Cash receipts from issuance of common stock total $33,000 d. Payment of note payable is $18,000 e. Payment of dividends is $13,000 f. From the balance sheet: September 30 2016 2015 $ 51,000 28,000 Salaries Expense Depreciation Expense-Plant Assets Total Operating Expenses Cash Accounts Receivable Merchandise Inventory Plant Assets Accumulated Depreciation Land Accounts Payable Accrued Liabilities Notes Payable (long-term) Common Stock, no par Retained Earnings $ 31,000 9,000 56,000 85,000 90,000 (15,000) 103,000 21,000 18,000 18,000 5,000 266,000 38,000 92,000 211,000 (43,000) 82,000 36,000 10,000 19,000 38,000 308,000 Net Income Before Income Taxes ncome Tax Expense Net Income 79,000 61,000 6,000 $ 55,000 Print Done

Solution

Answer

Cash Flow from Operating Activities

Net Profit before tax

61,000

Add: Non Cash and Non Operating Expenses

Depreciation

28,000

Operating profit before Working Capital changes

89,000

Add: Increase in Current Liabilities And decrease in Current Assets

Increase in Accounts Payable

15,000

Decrease in Accounts Receivable

18,000

Less: Decrease in Current Liabilities And Increase in Current Assets

Decrease in Accrued Liabilities

(8,000)

Increase in Inventory

(7,000)

Operating profit before Income Tax

107,000

Income Tax Paid

(6,000)

Cash Flow from Operating Activities (A)

101,000

Cash Flow from Investing Activities

Sale of Land

21,000

Purchase of Plant

(102,000)

Cash Used in Investing Activities (B)

(81,000)

Cash Flow from Financing Activities

Issue of Shares

33,000

Dividend Paid

(13,000)

Payment of Notes

(18,000)

Cash from Financing Activities ( C )

2,000

Increase in Cash Flow (A+B+C)

22,000

Opening Cash

9,000

Closing Cash

31,000

NON Cash Investing and Financing Activities

NON Cash Investing Activities

Purchase of Plant Assets by issuing Notes

19,000

Non Cash Financing Activities

Issue of Notes for purchasing Plant Assets

19,000

Equipment A/c

In $

In $

To Bal b/d

90,000

To Notes

19,000

To Bank

102,000

By Bal c/d

211,000

Total

211,000

Total

211,000

Acc. Depreciation A/c

In $

In $

By Bal b/d

15,000

By P&L

28,000

To bal. c/d

43,000

Total

43,000

Total

43,000

Notes A/c

In $

In $

To Bank

18,000

By Bal b/d

18,000

By Plant Assets

19,000

To bal. c/d

19,000

Total

37,000

Total

37,000

,

Cash Flow from Operating Activities
Net Profit before tax	61,000
Add: Non Cash and Non Operating Expenses
Depreciation	28,000
Operating profit before Working Capital changes	89,000
Add: Increase in Current Liabilities And decrease in Current Assets
Increase in Accounts Payable	15,000
Decrease in Accounts Receivable	18,000
Less: Decrease in Current Liabilities And Increase in Current Assets
Decrease in Accrued Liabilities	(8,000)
Increase in Inventory	(7,000)
Operating profit before Income Tax	107,000
Income Tax Paid	(6,000)
Cash Flow from Operating Activities (A)		101,000