b complete a statement of cash flows using the dataSolution

b) complete a statement of cash flows using the data

Solution

Answer 1. AMNAT COMPANY Balance Sheet 31-Dec-16 31-Dec-17 Current Assets: Cash ($3,450 - ($800 + $900 + $200 + $1,100))            450.00                100.00 Accounts Receivable (Net)            800.00                700.00 Inventory            900.00            1,100.00 Total Current Assets         2,150.00            1,900.00 Land ($500 - $400 + $100)            200.00                500.00 Property and Equipment ($925+ 700)         1,625.00             925.00 Accumulated Depreciation ($400 + $125)          (525.00)           (400.00) Net Property         1,100.00                525.00 Total Assets         3,450.00            2,925.00 Liabilities and Stockholders\' Equity Current Liabilities Accounts Payable            600.00                750.00 Short Term Bank Loan ($400 - $100)            300.00                400.00 Total Current Liabilities            900.00            1,150.00 Long-Term Notes Payable ($275 - $75)            200.00                275.00 Total Liabilities         1,100.00            1,425.00 Stockholders\' Equity Common Stock ($700 + $600)         1,300.00             700.00 Retained Earnings         1,050.00             800.00 Total Stockholders\' Equity         2,350.00            1,500.00 Total Liabilities and Stockholders\' Equity         3,450.00            2,925.00 Retained Earnings Particulars Amt Particulars Amt To Cash Dividend (Bal. Fig)                      100 By Balance b/f                      800 To Balance C/f                  1,050 By Net Income                      350                  1,150                  1,150 Answer 2. AMNAT COMPANY Statement of Cash Flows (Indirect Method) For the Year ended Dec 31, 2016 Cash Flow from opearating activities: Net Income              350.00 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense           125.00 Gain on sale of Land         (100.00) Changes in current assets and current liabilities: Increase in Accounts Receivables         (100.00) Decrease in Inventory           200.00 Decrease in Accounts Payable         (150.00)              (25.00) Net Cash provided by operating activities              325.00 Cash flow from Investing Activities Purchase of Property & Equipment         (700.00) Sale of Land           400.00 Net Cash provided by Investing activities            (300.00) Cash Flow from Financing Activities Payment of Short Term Bank Loan         (100.00) Payment of Long Term Notes Payable           (75.00) Issuance of Common Stock           600.00 Payment of Cash Dividends         (100.00) Net Cash used by Financing activities              325.00 Net Increase / (Decrease) in Cash              350.00 Cash balance at the beginning - Dec 31, 2015              100.00 Cash balance at the end - Dec 31, 2016              450.00