Show Me How Calculator The balance sheet of Dec 312016 Dec 3

Show Me How Calculator The balance sheet of Dec. 31,2016 Dec. 31, 2015 Assets 3 Cash 488.00 278.00 17700 400.00 225.00 58.00) 160.00 201.00 109.00 448.00 172.00 29.00) 1,061.00 (net) 6 Land Equipment $1.51000 $.0861.0 Total assets $176.00 2800 103,00 246.00 957.00 160.00 55.00 123.00 72300 $106100 ngs Total liabilities ar equity

Solution

a PELICAN JOE INDUSTRIES INC. Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities: Net income $339 Given Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 29 (58-29) Gain on sale of land -74 (122-448+400) Changes in current operating assets and liabilities: Increase in accounts receivable -77 (278-201) Increase in inventories -68 (177-109) Increase in accounts payable 16 (176-160) Net cash flow from operating activities $165 Cash flows from investing activities: Cash received from sale of land $122 Less cash paid for purchase of equipment -53 (225-172) Net cash flow from investing activities $69 Cash flows from financing activities: Cash received from sale of common stock $171 (103-55+246-123) Less cash paid for dividends* -77 Net cash flow from financing activities $94 Increase in cash $328 Cash at the beginning of the year 160 Cash at the end of the year $488 * $105 – $28 = $77 b. Pelican Joe Industries Inc.’s net income was more than the cash flows from operations because of: $29 of depreciation expense, which has no effect on cash. A $74 gain on the sale of land. The proceeds from this sale of $122, which include the gain, are reported in the Investing Activities section of the statement of cash flows. Changes in current operating assets and liabilities that are added or deducted, depending on their effect on cash flows: Increase in accounts receivable, $77 deducted Increase in inventories, $68 deducted Increase in accounts payable, $16 added