1. Use the balance sheet, income statement and additional information for Fish Inc. presented on the next page. T-accounts are also provided in a separate pdf file case you want to use them.

What are the Cash Flows Provided by Operating Activities? $____________

What are the Cash Flows Used by Investing Activities? $____________

What are the Cash Flows Provided by Financing Activities? $____________

2. Use the same balance sheet, income statement and additional information for Fish Inc. to prepare the Operating Activities section of its Statement of Cash Flows using the direct method and provide the following subtotals:

What is Cash Collected from Customers? $____________

What is Cash Paid to Suppliers? $____________

What is Cash Paid for Operating Expenses? $____________

What is Cash Paid for Interest? $____________

Remember to staple the paper(s) on which you did the work to this sheet.

The following information is taken from Fish Inc.'s financial statements:

For the Year Ended December 31, 2013:
Sales ................................................$386,000
Cost of Sales .................................... 202,000
Gross Profit....................................... 184,000
Operating Expenses.......................... 159,000
Income before Gain............................ 25,000
Gain on Sale of Plant Assets................ 2,000
Income before taxes.............................27,000
Income Tax Expense............................. 4,250
Net Income........................................$22,750

Additional Information
Cash dividends were declared and paid.
Bonds were sold at face value. Three-fourths (75%) were issued to purchase land and one-fourth (25%) were issued for cash.
A building with a cost of $115,000, which had accumulated depreciation of $97,000, was sold for $20,000 cash.
Another building was purchased for cash.
Common stock was sold for cash, and was sold at above par value.
Operating expenses include depreciation, amortization and bad debtexpense.

Transcribed Image Text:

December 31 2013 S90,000 79,000 -8.000 127,500 11,000 99,000 285,000 80,000 24.000 S627.500 2012 S71.000 68.000 5,000 131.400 9,000 Cash Accounts receivable Allowance for Doubtful Accounts Inventory Prepaid expenses Buildings Accumulated depreciation Patents, net 220.000 86,000 439400 Accounts payable Accrued liabilities Interest payable Bonds payable Common stock Paid in Capital Retained earnings S53,000 36,000 7,500 132,000 275,000 79,000 45,000 S627,500 S45,000 63,000 6,400 250,000 46.000 29.000 439.400