Question 1 25 points The following information is related to

Question 1 (25 points) The following information is related to Alpha Company\'s fiscal year 2017. Income Statement: S300,000 50,000 5,000 500 Balance Sheet 12/31/17: Increase (Decrease) ($4,000) Net Income Depreciation Expense Gain on Sale of Plant Assets Interest Expense Accounts Payable Plant Assets Purchased 250,000 Plant Assets - Disposals (100,000)

Solution

Cash Flows from Operations: Net Income / Loss 300,000 Adjustments to Net Income Decrease in Accounts Payable -4,000 Depreciation Expense 50,000 Gain on Sale of Plant Assets (100,000 - 5,000) -5,000 41,000 Net Cash Flows from Operating Activities 341,000 Cash Flows from Investing: Proceeds from Disposal of Plant Assets 105,000 Purchase of Plant Assets -250,000 Net Cash Flows from Investing Activities -145,000 Cash Flows from Financing: Dividends Paid -30,000 Net Cash Flows from Investing Activities -30,000 Net Increase in Cash 166,000 Cash balance at January 1 50,000 Cash balance at December 31 216,000 Financing activities/ Noncash Investing: Issued Common Stock to retire Long Term Note 125,000