Hunter Company is developing its annual financial statements

Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized Balance Sheet at December 31 Cash Accounts Receivable $ 44,580 19,000 28,800 31,000 31,800 38,000 13,200104,000 Equipment Accumulated Depreciation-Equipment (37, 200) (31.000) $181,180 $161,000 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings S 26,200 S 23,000 1,000 38,000 50,000 83,00062,000 33,20025,000 780 $181.180 $161,000 Income Statement for 2015 Sales Revenue Cost of Goods Sold Other Expenses $102,000 62,000 27,800 Net Income S 12,200 Additional Data t equipment for cash, $9,200 b Paid $12.600 on the long-term note payable c Issued new shares of stock for $21,000 cash d Declared and paid a $4,000 cash dividend Type here to search DOLL

Solution

Answer

For the year ended Dec 31, 2015

Cash Flows from Operating Activities

Net Income

$                12,200.00

Adjustments to reconcile Net Income to Net Cash provided by Operating activities:

Depreciation expense

$          6,200.00

Decrease in Accounts receivables

$          2,200.00

Decrease in Inventory

$          6,200.00

Increase in Accounts Payable

$          3,200.00

Decrease in Salaries & Wages payable

$           (220.00)

$                17,580.00

Net cash provided by Operating Activities

$                29,780.00

Cash Flow from investing Activities

Equipment purchased

$       (9,200.00)

Net cash used by Investing Activities

$                (9,200.00)

Cash Flows from Financing Activities

Long Term Notes Payable paid

$     (12,000.00)

Common Stock issued

$       21,000.00

Dividend paid

$       (4,000.00)

Net Cash Provided by Financing activities

$                  5,000.00

Net Increase in Cash

$                25,580.00

Cash at the beginning

$                19,000.00

Cash at the end

$                44,580.00

Cash Flows from Operating Activities
Net Income		$                12,200.00
Adjustments to reconcile Net Income to Net Cash provided by Operating activities:
Depreciation expense	$          6,200.00
Decrease in Accounts receivables	$          2,200.00
Decrease in Inventory	$          6,200.00
Increase in Accounts Payable	$          3,200.00
Decrease in Salaries & Wages payable	$           (220.00)	$                17,580.00
Net cash provided by Operating Activities		$                29,780.00
Cash Flow from investing Activities
Equipment purchased	$       (9,200.00)
Net cash used by Investing Activities		$                (9,200.00)
Cash Flows from Financing Activities
Long Term Notes Payable paid	$     (12,000.00)
Common Stock issued	$       21,000.00
Dividend paid	$       (4,000.00)
Net Cash Provided by Financing activities		$                  5,000.00
Net Increase in Cash		$                25,580.00
Cash at the beginning		$                19,000.00
Cash at the end		$                44,580.00