The balance sheet for Bostick Corporation follows Ending bal

The balance sheet for Bostick Corporation? follows:

Ending balance

Beginning balance

?Assets:

Current? assets:

Cash and cash equivalents

$52,600

?$44,600

Accounts receivable

$18,300

?$22,300

Inventory

$48,500

?$53,000

Total current assets

$119,400

?$119,900

?Property, plant, and equipment

?$287,800

?$275,300

Less accumulated depreciation

$109,000

?$101,550

Net? property, plant, and equipment

$178,800

?$173,750

Total assets

$298,200

?$293,650

Liabilities and? stockholders\' equity:

Current? liabilities:

Accounts payable

?$26,030

?$29,580

Wages payable

?$41,600

?$47,100

Other accounts payable

$42,200

?$35,400

Notes payable

?$24,200

?$25,200

Total current liabilities

$134,030

?$137,280

Longminus?term

?$73,500

?$79,500

Deferred income taxes

$19,500

?$17,000

Total liabilities

$227,030

?$96,500

?Stockholders\' equity:

Common stock

$46,750

?$45,000

Retained earnings

$24,420

?$14,870

Total? stockholders\' equity

$71,170

?$59,870

Total liabilities and? stockholders\' equity

$298,200

?$293,650

Operating income during the period was $20,450?, while cash dividends paid were $10,900. The total sources of cash at Bostick Corporation during the year was?

	Ending balance	Beginning balance
?Assets:
Current? assets:
Cash and cash equivalents	$52,600	?$44,600
Accounts receivable	$18,300	?$22,300
Inventory	$48,500	?$53,000
Total current assets	$119,400	?$119,900
?Property, plant, and equipment	?$287,800	?$275,300
Less accumulated depreciation	$109,000	?$101,550
Net? property, plant, and equipment	$178,800	?$173,750
Total assets	$298,200	?$293,650
Liabilities and? stockholders\' equity:
Current? liabilities:
Accounts payable	?$26,030	?$29,580
Wages payable	?$41,600	?$47,100
Other accounts payable	$42,200	?$35,400
Notes payable	?$24,200	?$25,200
Total current liabilities	$134,030	?$137,280
Longminus?term debt	?$73,500	?$79,500
Deferred income taxes	$19,500	?$17,000
Total liabilities	$227,030	?$96,500
?Stockholders\' equity:
Common stock	$46,750	?$45,000
Retained earnings	$24,420	?$14,870
Total? stockholders\' equity	$71,170	?$59,870
Total liabilities and? stockholders\' equity	$298,200	?$293,650

Solution

Cash inflow from operating activities $35,650

Cash outflow from investing activities -$12,500

Cash outflow from financing activities -$15,150

Net cash flow for the year $8,000

Working:

BOSTIC CORPORATION
Cash flow statement
Cash flow from operating activities:
Operating income		20450
Adjustment for non cash items
Depreciation expense *		7450
Adjustment for changes in working capital
Decrease in accounts receivable	4000
Decrease in inventory	5000
Decrease in accounts payable	-3550
Decrease in wages payable	-5500
Increase in other accounts payable	6800
Decrease in notes payable	1000	7750
Cash flow from operating activities		35650
Cash flow from investing activities :
Purchase of property , plant and equipment **	-12500
Cash flow from investing activities		-12500
Cash flow from financing activities:
Repayment of long term liabilities (73,500 - 79,500)	-6000
Dividends paid ***	-10900
Issue of comon stock (46,750 - 45,000)	1750
Cash flow from financing activities		-15150
Cash addition		8000
Beginning cash balance		44600
Ending cash balance		52600
Accumulated depreciation, ending	109000
Less: Accumulated depreciation, beginning	101550
Depreciation expense for the year *	7450
Property, plant and equipment, ending	287800
Less: Property, plant and equipment, beginning	275300
Purchase of property , plant and equipment **	12500
Retained earnings , beginning	14870
Add: Net operating income	20450
Total	35320
Retained earnings , ending	24420
Cash dividends paid ***	10900