2016 2015

Assets:

Cash $25,000 $100,000

Accounts receivable 163,500 125,000

Inventory 183,000 220,000

Property, Plant and Equipment 70,000 50,000

Less: Accumulated Depreciation (40,000) (35,000)

Long-term investments 20,000 65,000

Valuation Allowance LT Investments 4,000 2,000

Totals $425,500 $527,000

Liabilities and shareholders equity:

Accounts payable - Merchandise $ 60,000 $110,000

Operating expenses payable 29,500 25,000

Notes Payable 10,000 -0-

Bonds payable 60,000 110,000

Common stock 150,000 125,000

Treasury Stock, Common (10,000) -0-

Retained earnings 122,000 155,000

Accumulated Other Comprehensive Income 4,000 2,000

Totals $425,500 $527,000

Cupcake Company

Income Statement

For the Year Ended December 31, 2016

Sales $571,000

Cost of Goods sold 372,500

Gross Profit $198,500

Operating expenses (excluding depreciation expense) 182,000

Depreciation expense 5,000

Income from operations $ 11,500

Other expenses:

Loss on sale of long-term investment (4,500)

Net Income 7,000

Other comprehensive Income Unrealized holding gains 2,000

Comprehensive Income $ 9,000

Additional Information 2016:

Cash dividends were declared and paid in 2016.

No stock dividends were declared or issued in 2016

No Property, Plant or Equipment was sold in 2016

During 2016, Property, Plant and Equipment of $10,000 was acquired by signing a $10,000 Notes Payable on the day of acquisition. All other acquisitions were paid with cash

The following were purchased/sold using/receiving cash: Long-term investments and Treasury Stock

Any change in Bonds Payable relates to repayment of principle (face) amounts.

All sales of Common Stock (No par value) were for cash

Prepare the Statement of Cash Flows of Cupcake Company for the year ended December 31, 2016.

A. Prepare a Statement of Cash Flows (direct method) using the Spreadsheet Approach I have done a few But cant go any further please help.

		12/31/2015		Debit	Credit		12/31/2016
Assets
Cash		100000					25000
Accounts Receivable		125000	-1	38500			163500
Inventory		220000			37000	(2)	183000
L-T Investment		65000			45000		20000
Valuation Allowence-LT Investment		2000	(5)		2000	(5)	4000
Buildings and Equip.		50000	(6)	20000			70000
Less: A.D.		(35000)			5000	(4)	(40000)
		527000					425500
Liabilities
Accounts Payable		110000	(2)		50000	(2)	60000
Operating Expense		25000			4500	(3)	29500
Notes Payable					10000	(6)	10000
Bonds Payable		110000			50000		60000
Shareholders' Equity
Common Stock		125000	(8)	25000			150000
Retained Earnings		155000			9000	(7)	122000
OCI		2000			2000	(10)	4000
Less: Treasury Stock		0	(9)	10000			(10000)
		527000					425500
Revenues
Sales Revenue					571000	(1)	571000
Expenses
Cost of Goods Sold			(2)	372500			(372500)
Salaries Payable			(3)	182000			(182000)
Depr. Expense			(4)	5000			(5000)
Loss on Sale of Long term investment			(5)	4500			(4500)
OCI Unrealised holding gain				2000	2500	(5)	2000
Net Income				9000		(7)	9000
Statement of Cash Flows
Operating Activities
Collections from customers			(1)	532500
Dividends Collected					285500	(2)
Cash paid for inventory
Cash paid to employees					177500	(3)
Cash paid for interest
Cash paid for investment					25000	(8)	330000
Investing Activities
Proceeds from Sale of Building
Purchase of equipment					10000	(6)
Sale Investments				45000			(10000)
Financing Activities
Proceeds from sale of Bonds				50000
Cash Dividends paid
Cash paid for TS					10000	(9)	40000
Change in cash account							360000
Totals				1296000	1296000