Thu 440 PM Q O ct ml er 16 HOMEWORK p35 Help Save Exit Submi

Thu 4:40 PM Q O ct ml er 16- HOMEWORK -p3&5 Help Save& Exit Submit Check my work Forten Company, a merchandiser, recently completed its calendar-year 2017 ope credit sales, (2) all credits to Accounts are on credit, (4) all debits to Acco advance and are initially debited rations. For the year, () all sales are Recelvable reflect cash receipts from customers, (3) all purchases of inventory unts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in to Prepaid Expenses. The company\'s income statement and balance sheets follow. f 2 31, 2017 and 2016 201 Cash s 60,400 80, 500 57,625 258,800 2,035 ,960 115,000 (49.500 $534,551 $464,460 76,340 286,156 Prepaid expenses Total current assets Equipment Accum. depreci Total assets 1,280 2:.200300,00 150,500 Liabilities and Equity Short-tern notes payable 12,100 .400 -61,500? 55,150 133,741 188,325 Total liabilities 176,750157,250 Common stock, $5 par value Paid-in capital in excess of par, conmon stock Retained earnings 44,500 $534,551$464,460 1c2 . | of 2 :111] Prev Next >

Solution

Cash flow Statement Casah flows from Operating activities: Net Income for the period 112175 Adjustment required for reconciliation Depreciation expense 27750 Loss on sale of equipment 12125 Increase in Accounts receivable -18715 Increase n Inventory -27356 Decreasse in Prepaid expense 755 Decrease in Accounts payable -65034 Net cash provided from Operating activities 41700 Cash flows from Investing activities: Sale of equipment (67875-37125-12125) 18625 Purchase of equipment -44000 Net ccash used in investing activities -25375 Cash flows from Financing activities: Borrowings from short term notes 4700 Repayment of long term note payable -53625 Issue of common Stock 64000 Dividend paid -51500 Net cash used in financing activities -36425 Net decrease in cash -20100 Add: Beginning Balance in cash 80500 Ending balance in cash 60400 Cash flow Statement Casah flows from Operating activities: Cash collections from Accounts receivable (617500+57625-76340) 598785 Cash paid for inventory (292000+286156-258800+125175-60141) -384390 Cash paid for operating expnse (139400+1280-2035) -138645 Taxes paid -34050 Net cash provided from operating activities 41700 Cash flows from Investing activities: Sale of equipment (67875-37125-12125) 18625 Purchase of equipment -44000 Net ccash used in investing activities -25375 Cash flows from Financing activities: Borrowings from short term notes 4700 Repayment of long term note payable -53625 Issue of common Stock 64000 Dividend paid -51500 Net cash used in financing activities -36425 Net decrease in cash -20100 Add: Beginning Balance in cash 80500 Ending balance in cash 60400