2019 2020 $ 62,000 $ 90,600 $ $ Danover Fiber Composites Balance Sheet May 31, 2019 Assets Cash Accounts receivable Allowance for doubtful accounts Accounts receivable, net Interest receivable Inventories Prepaid insurance Total Current Assets 129,000 (10,300) 165,000 (13,200) 118,700 4,000 110,000 20,300 315,000 151,800 4,000 117.000 23.100 386,500 398,000 406,000 $ Investment in SeBASS Bonds (AFS) Property, Plant and Equipment, gross Accumulated depreciation Property, Plant and Equipment, net Total Assets $ 1.670.000 (864,000) 1,768,000 (748,517) 806,000 $ 1,519,000 1,019,483 $ 1,811,983 $ $ Liabilities Accounts payable Salaries payable Interest payable Dividends payable Total Current Liabilities 87,500 17,000 76,300 22,200 2,660 1,900 103,060 2,600 107,100 Long-term note payable Total Liabilities 450,000 557,100 716,000 819,060 Shareholders' Equity Common stock, no par Retained Earnings Accumulated Other Comprehensive Income Treasury stock Total Shareholder's Equity Total Liabilities and Shareholders' Equity 375,000 691,900 (2,000) (103,000) 961,900 $ 1,519,000 375,000 731,323 6,000 (119.400) 992,923 $ 1,811,983 file.docx $ 2,256,000 1,393,000 863,000 Danover Fiber Composites Income Statement For the Year Ended May 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Salary expense Depreciation expense Bad debt expense Insurance expense Maintenance expense $ 372,200 104,517 8,400 36,800 9,000 530,917 332,083 Operating income (12,000) Other (income) expense: Investment & interest income Loss (gain) on sale of Sales Building 2 Interest expense Net income (loss) 11,660 (340) 332,423 $ Danover Fiber Composites Statement of Shareholder's Equity For the Year Ended May 31, 2020 Common Stock $ 375,000 Retained Earnings $ 691,900 332,423 (293,000) $ (2,000) Treasury Stock (103,000) $ $ Balance at May 31, 2019 Net income Dividends declared Unrealized gain on AFS Securities - SeBASS Purchase of Treasury Stock Balance at May 31, 2020 Total 961,900 332,423 (293,000) 8,000 (16,400) 992,923 8,000 (16,400) (119,400) $ 375,000 $ 731,323 $ 6,000 $ $ A1 Cash AR Sales 160,500 2,095,500 48,000 9,000 57,000 A2 2,052,000 20,300 Cash AR 20,300 Allow for UA B1 7,500 39.600 Journal Entries PP&E - Adm Bldg Mainten expense 2,256,000 Cash HI Insur exp 2,052,000 Prepaid Insurance H2 Prepaid Insurance 7,500 Cash H3 Insur exp 2,000 Prepaid Insurance ($39,600 /12 x 5 = $16,500) n PP&E - SB 4 2,000 Cash Notes payable 8,400 22 Inter exp 39,600 2,000 16,500 B2 AR Allow for UA B3 Cash 16,500 2,000 380,000 8,400 114,000 266,000 2,660 $ Inter pay 2,660 13,200 4,800 8,400 $ 104,517 1,400,000 104,517 1,400,000 17,000 1,411,200 17,000 1,411,200 350,000 1,393,000 350,000 1,393,000 22,200 AR ci BDE Allow for UA $165.000 x 8% = Unadusted balanace Required adjustment D1 Inventory Accts Pay D2 Accts Pay Cash D3 COGS Inventory Invent B4 COGS & WID = Inventory EB COGS E Interest expense Cash ($450,000 x 2.0% = $12,500) F1 Cash Interest receivable F2 Cash Interest receivable Interest income ($400,000 x 3% = $12,000) 22,200 $ 1,510,000 (117,000) $1,393,000 110,000 220,000 9,000 ($266,000 x 3.0% /12 x 4 = $2,660) 13 Deprec exp A/C Depreciation ji Salaries payable Cash J2 Salary expense Cash J3 Salary expense Salaries payable K Cash Accumulated depreciation Loss /Gain on sale of SB2 PP&E (SB 2) L SeBASS invest (AFS) Unreal Hold G/L - OCI ($106.000 - $398,000 = 8,000 gn) M Treasury stock Cash NI Retained eamings Dividend payable N2 Dividend payable Cash ($2,600-$42,000-$1,900) 330.000 9,000 8,000 8,000 4,000 4,000 16,400 8,000 4,000 16,400 293.000 12,000 293,000 293,700 293,700 10,507,977 10,507,977 T - ACCOUNTS Allow UA BO 10,300 BB T-ACCOUNTS Interest receivable Inventory 4,000 4,000 71 110,000 4.000 D1 1,400,000 1,393,000 DS Accts Rec 129,000 2,052,000 AZ 2,095,500 7,500 B1 2,000 2,000 B3 BB B1 7,500 F2 A1 A2 1 B2 2,000 B2 2,061,500 7,500 4,000 F1 F2 1,393.000 T-ACCOUNTS Cash 62,000 160,500 2,052,000 1,411,200 D2 2,000 9,000 E 4,000 57.000 G 8,000 39,600 H2 110,000 114.000 17.000 1 350,000 2 16,400 M 293,700 M 2,336,500 2,307.900 90,600 8,400 CB 10,400 13,200 EB 2,097,500 165,000 4,000 4,000 1,400,000 117,000 EB EB ER BB BB AC DP 864,000 BB 220,000 104,517 B BB PPKE 1,670,000 48,000 330,000 K 380,000 SeBASS-AFS 398,000 8,000 L PRP Insur 20,300 20,300 HA 39.600 16,500 HB 39,600 36,800 23.100 H2 11 EB 330,000 220,000 428,000 1,768,000 104,517 748,517 8,000 406,000 EB EB EB EB Inter Pay Div Pay Accts Pay 87,500 BB 1,411,200 1,400,000 1 Sal Pay 17,000 BB 17,000 22,200 JE BB L-T Note Pay 450,000 BB 266,000 2,600 BB 293,000 NI D2 ji 2,660 R N2 293,700 17,000 293,700 1,411,200 1,400,000 76,300 EB 22,200 22,200 EB 2,660 2,660 EB 293,000 1,900 E 266,000 716,000 EB Com Stock 375,000 30 AOCI 2,000 BB Ret Eamings 691,900 BD 293,000 332,423 NI Treasury Stock 103,000 16,400 NI 8,000 L M 293,000 332,423 731,323 EB 8,000 6,000 EB 16,400 119,400 375,000 EB ER file.docx Sales 2,256,000 A1 COGS 1,393,000 Sal Exp J2 350,000 J3 22,200 Deprec Exp 104,517 D3 B 2,256,000 2,256,000 EB 1,393,000 1,393,000 372,200 372,200 104,517 104,517 EB EB EB Insur Exp Impair Loss Loss on LCM Maint Exp 9,000 H1 20,300 16,500 H3 9,000 36,800 36,800 EB EB 9,000 EB EB Loss /Gain on SB2 Inter Exp 9,000 2,660 Interest Income 12,000 F2 BDE 8,400 E 12 11,660 11,660 12,000 12,000 EB 8.400 8,400 EB EB EB Danover Fiber Composites Expanded Accounting Equation Analysis Liabilities Accounts Salaries Interest payable Payable Payable Payable $ 87,500 $ 17,000 $ $ 2.800 Dividends Allowance for DA (10.300) Interest Receivable 4,000 Assets Prepaid Inventory Insurance $ 110,000 $ 20,300 AFS SEBASS $ 398 000 Gross PP&E $ 1,670,000 L-T Note Payable $450,000 Accumulated Total Depreciation Assets S (864,000) $1.519,000 2.256,000 Total Labilities $ 557.100 Cash 62,000 160,500 2,052,000 $ Transaction Balance 630/2018 Al A2 BI B2 B3 Gross AR $ 129,000 2,095,500 (2.052,000) (7,500) 2,000 (2.000) 7,500 (2.000) 2,000 (8.400) (1.411,200) 1,400,000 (1,393,000) (8,400 1.400,000 (1.411,200) (1.393,000) (9,000) 1,400,000 (1.411,200) 1.400.000 (1.411.2009 (9,000) 4,000 8,000 (57,000) (4.000) 4,000 48.000 12,000 (9,000) (20,300) (39,600) (20.300) 39.600 (16.500) (114,000) DI D2 D3 E F1 F2 G HI H2 H3 11 12 3 j1 J2 13 L M NI N2 Balance 6/30/2019 (16,500) 266,000 380,000 266,000 2.660 265.000 2,660 (104,517) (104,517) (17,000) (350,000) (17,000) (17,000) (350,000) (17,000) 22,200 22 200 110,000 (330,000) 220.000 8.000 8,000 (16,400) (16,400) 1293,700) $ 90,600 $ 165,000 $(13200) $ 293,000 (293,700 1.900 $ 716,000 4 000 $ 117.000 (293,700 S (748,517) $1.811,983 $1.811.983 $ 23,100 $ 406,000 S 1,768,000 76,300 $ 22,200 $ 2.660 S 293.000 1293.700 $ 19,060 819,060 Income Statement Common Stock $375,000 Shareholder's Equity Retained Treasury Total Earnings AOCI Stock Equity 691,900 $ (2.000) ${108,000) $ 961,900 2.256,000 2,256,000 Revenue Expense Total Liab & Equity $ 1,519,000 2,256,000 Description 2,256,000 Sales (8,400) (8.400) 8,400 Bad debt expense (8,400) 1,400,000 (1,411,200) (1,393,000) (9,000) (1.393,000) (9,000) (1,393,000) (9.000) 1,393,000 COGS 9,000 Interest expense 12,000 12,000 (9,000) (20,300) 12,000 (9,000) (20,300) 12,000 (9,000) (20,300) 9,000 20,300 interest income Maintenance expense (painting) Insurance expense (16,500) (16,500) 266,000 16,500 Insurance expense (2,660) (104,517) (16,500) (2,660) (104,517) (350,000) (22,200) (104,517) (17,000) (350,000) (350,000) (22,200) 2,660 Interest expense 104,517 Depreciation expense 350,000 Salary expense 22,200 Salary expense Loss/gain on sale of SB 2 8,000 (16,400) 8,000 (16,400) (293,000) 8,000 (16,400) (293,000) $375,000 731,323 $ 6,000 $119,400) S 992,923 (332,423) $ 992,923 (293,700) $ 1,811,983 1,811,983 $ 2.268,000 1,935,577 $ 332,423 Net Income . O Using the direct method, prepare Danover Fiber Composites Statement of Cash Flows for the year ended May 31, 2020. Prepare all required supplemental schedules. Ignore income taxes Your work is to be done using Microsoft Office's EXCEL or an EXCEL compatible program. Use the Case 2_Student Support EXCEL Worksheet to assist you. Submit tot . . CHECK FIGURES Net cash flows provided (used) by: Operating Activities = $390,700 Investing Activities = $(52,000) . Danover Fiber Composites Statement of Cash Flows Year Ended May 31, 2020 Cash Flows from Operating Activities: 2020 2019 Change A1 A2 33 $ Danover Fiber Composites Balance Sheet May 31, Assets Cash Accounts receivable Allowance for doubtful accounts Interest receivable Inventories Prepaid Insurance Total Current Assets 28,600 36.000 (2,900) 90.600 $ 165.000 (13,200) 4,000 117.000 23,100 386,500 62,000 129,000 (10,300 4,000 110,000 20,300 315,000 F1 F2 K $ Cash T Account (Case 1) 62.000 180.500 2,052,000 1411,200 D2 2.000 9,000 4,000 57,000 G 8.000 39,600 H2 110,000.0 114,000 11 17,000 J1 350,000 J2 16,400 M 293,700 N 7,000 2,800 Cash paid to (for) Investment in SeBASS Bonds (AFS) Property, Plant and Equipment, gross Accumulated depreciation Total Assets 2,307,900 406.000 1,768,000 (748,517) $ 1,811,983 $ 398,000 1,870,000 (864,000) 1,519,000 8.000 99,000 115,483 292,983 2.336,500 90.600 Total Net Cash F1 Cash T- Account from Case 1 Solution Cash Flows from Investing Activities: $ 87,500 17,000 Liabilities Accounts payable Salaries payable Interest payable Dividends payable Total Current Liabilities 76,300 $ 22 200 2.660 1,900 103,060 (11.200) 5,200 2,660 (700) Net Cash F1 2,600 107,100 Long-term note payable Total Liabilities 716.000 819,060 450,000 567,100 266,000 Cash Flows from Financing Activities: Net Cash Fi Shareholders' Equity Common stock, no par Retained Earnings Accumulated Other Comprehensive Income Treasury stock Total Shareholder's Equity Total Liabilities and Shareholders' Equity 375,000 375,000 731,323 891,900 8.000 (2,000) (119,400) 992.923 961,900 $ 1.811.983 $ 1,519,000 39,423 8.000 (16.400) Increase in Cash at May 82,000 Cash at May 31, 2020 (103,000) 292.983 Reconciliation of net Income to Cash Flows from Operating Activities Year Ended May 31, 2020 Cash Flows from Operating Activities: $ $ 2.256,000 1.393,000 863,000 Danover Fiber Composites Income Statement For the Year Ended May 31, 2020 Sales Cost of goods sold Gross profit Operating expenses Salary expense Depreciation expense Bad debt expense Insurance expense Maintenance expense Operating income Other (income) expense: Investment & interest income Loss (gain) on sale of Sales Building 2 Interest expense Net Income (loss) $ 372,200 104,517 8.400 36.800 9.000 530,917 332,083 Net change: $ NCF Operating Activities Noncash investing and financing activities: (12,000) 11.660 (340) 332,423 $ 2020 2019 Change $ $ Danover Fiber Composites Balance Sheet May 31, Assets Cash Accounts receivable Allowance for doubtful accounts Interest receivable Inventories Prepaid insurance Total Current Assets 28,600 36,000 (2,900) 90,600 165,000 (13,200) 4,000 117,000 23,100 386,500 62,000 129,000 (10,300) 4,000 110,000 20,300 315,000 7,000 2,800 Investment in SeBASS Bonds (AFS) Property, Plant and Equipment, gross Accumulated depreciation Total Assets 406,000 1,768,000 (748,517) $ 1,811,983 398,000 1,670,000 (864,000) $ 1,519,000 8,000 98,000 115,483 292,983 $ 87,500 17,000 Liabilities Accounts payable Salaries payable Interest payable Dividends payable Total Current Liabilities $ 76,300 22,200 2,660 1,900 103,060 (11,200) 5,200 2,660 (700) 2,600 107,100 266,000 Long-term note payable Total Liabilities 716,000 819,060 450,000 557,100 Shareholders' Equity Common stock, no par Retained Earnings Accumulated Other Comprehensive Income Treasury stock Total Shareholder's Equity Total Liabilities and Shareholders' Equity 375,000 731,323 6,000 (119,400) 992,923 $ 1,811,983 375,000 691,900 (2,000) (103,000) 961,900 $ 1,519,000 39,423 8,000 (16,400) 292,983 2019 2020 $ 62,000 $ 90,600 $ $ Danover Fiber Composites Balance Sheet May 31, 2019 Assets Cash Accounts receivable Allowance for doubtful accounts Accounts receivable, net Interest receivable Inventories Prepaid insurance Total Current Assets 129,000 (10,300) 165,000 (13,200) 118,700 4,000 110,000 20,300 315,000 151,800 4,000 117.000 23.100 386,500 398,000 406,000 $ Investment in SeBASS Bonds (AFS) Property, Plant and Equipment, gross Accumulated depreciation Property, Plant and Equipment, net Total Assets $ 1.670.000 (864,000) 1,768,000 (748,517) 806,000 $ 1,519,000 1,019,483 $ 1,811,983 $ $ Liabilities Accounts payable Salaries payable Interest payable Dividends payable Total Current Liabilities 87,500 17,000 76,300 22,200 2,660 1,900 103,060 2,600 107,100 Long-term note payable Total Liabilities 450,000 557,100 716,000 819,060 Shareholders' Equity Common stock, no par Retained Earnings Accumulated Other Comprehensive Income Treasury stock Total Shareholder's Equity Total Liabilities and Shareholders' Equity 375,000 691,900 (2,000) (103,000) 961,900 $ 1,519,000 375,000 731,323 6,000 (119.400) 992,923 $ 1,811,983 file.docx $ 2,256,000 1,393,000 863,000 Danover Fiber Composites Income Statement For the Year Ended May 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Salary expense Depreciation expense Bad debt expense Insurance expense Maintenance expense $ 372,200 104,517 8,400 36,800 9,000 530,917 332,083 Operating income (12,000) Other (income) expense: Investment & interest income Loss (gain) on sale of Sales Building 2 Interest expense Net income (loss) 11,660 (340) 332,423 $ Danover Fiber Composites Statement of Shareholder's Equity For the Year Ended May 31, 2020 Common Stock $ 375,000 Retained Earnings $ 691,900 332,423 (293,000) $ (2,000) Treasury Stock (103,000) $ $ Balance at May 31, 2019 Net income Dividends declared Unrealized gain on AFS Securities - SeBASS Purchase of Treasury Stock Balance at May 31, 2020 Total 961,900 332,423 (293,000) 8,000 (16,400) 992,923 8,000 (16,400) (119,400) $ 375,000 $ 731,323 $ 6,000 $ $ A1 Cash AR Sales 160,500 2,095,500 48,000 9,000 57,000 A2 2,052,000 20,300 Cash AR 20,300 Allow for UA B1 7,500 39.600 Journal Entries PP&E - Adm Bldg Mainten expense 2,256,000 Cash HI Insur exp 2,052,000 Prepaid Insurance H2 Prepaid Insurance 7,500 Cash H3 Insur exp 2,000 Prepaid Insurance ($39,600 /12 x 5 = $16,500) n PP&E - SB 4 2,000 Cash Notes payable 8,400 22 Inter exp 39,600 2,000 16,500 B2 AR Allow for UA B3 Cash 16,500 2,000 380,000 8,400 114,000 266,000 2,660 $ Inter pay 2,660 13,200 4,800 8,400 $ 104,517 1,400,000 104,517 1,400,000 17,000 1,411,200 17,000 1,411,200 350,000 1,393,000 350,000 1,393,000 22,200 AR ci BDE Allow for UA $165.000 x 8% = Unadusted balanace Required adjustment D1 Inventory Accts Pay D2 Accts Pay Cash D3 COGS Inventory Invent B4 COGS & WID = Inventory EB COGS E Interest expense Cash ($450,000 x 2.0% = $12,500) F1 Cash Interest receivable F2 Cash Interest receivable Interest income ($400,000 x 3% = $12,000) 22,200 $ 1,510,000 (117,000) $1,393,000 110,000 220,000 9,000 ($266,000 x 3.0% /12 x 4 = $2,660) 13 Deprec exp A/C Depreciation ji Salaries payable Cash J2 Salary expense Cash J3 Salary expense Salaries payable K Cash Accumulated depreciation Loss /Gain on sale of SB2 PP&E (SB 2) L SeBASS invest (AFS) Unreal Hold G/L - OCI ($106.000 - $398,000 = 8,000 gn) M Treasury stock Cash NI Retained eamings Dividend payable N2 Dividend payable Cash ($2,600-$42,000-$1,900) 330.000 9,000 8,000 8,000 4,000 4,000 16,400 8,000 4,000 16,400 293.000 12,000 293,000 293,700 293,700 10,507,977 10,507,977 T - ACCOUNTS Allow UA BO 10,300 BB T-ACCOUNTS Interest receivable Inventory 4,000 4,000 71 110,000 4.000 D1 1,400,000 1,393,000 DS Accts Rec 129,000 2,052,000 AZ 2,095,500 7,500 B1 2,000 2,000 B3 BB B1 7,500 F2 A1 A2 1 B2 2,000 B2 2,061,500 7,500 4,000 F1 F2 1,393.000 T-ACCOUNTS Cash 62,000 160,500 2,052,000 1,411,200 D2 2,000 9,000 E 4,000 57.000 G 8,000 39,600 H2 110,000 114.000 17.000 1 350,000 2 16,400 M 293,700 M 2,336,500 2,307.900 90,600 8,400 CB 10,400 13,200 EB 2,097,500 165,000 4,000 4,000 1,400,000 117,000 EB EB ER BB BB AC DP 864,000 BB 220,000 104,517 B BB PPKE 1,670,000 48,000 330,000 K 380,000 SeBASS-AFS 398,000 8,000 L PRP Insur 20,300 20,300 HA 39.600 16,500 HB 39,600 36,800 23.100 H2 11 EB 330,000 220,000 428,000 1,768,000 104,517 748,517 8,000 406,000 EB EB EB EB Inter Pay Div Pay Accts Pay 87,500 BB 1,411,200 1,400,000 1 Sal Pay 17,000 BB 17,000 22,200 JE BB L-T Note Pay 450,000 BB 266,000 2,600 BB 293,000 NI D2 ji 2,660 R N2 293,700 17,000 293,700 1,411,200 1,400,000 76,300 EB 22,200 22,200 EB 2,660 2,660 EB 293,000 1,900 E 266,000 716,000 EB Com Stock 375,000 30 AOCI 2,000 BB Ret Eamings 691,900 BD 293,000 332,423 NI Treasury Stock 103,000 16,400 NI 8,000 L M 293,000 332,423 731,323 EB 8,000 6,000 EB 16,400 119,400 375,000 EB ER file.docx Sales 2,256,000 A1 COGS 1,393,000 Sal Exp J2 350,000 J3 22,200 Deprec Exp 104,517 D3 B 2,256,000 2,256,000 EB 1,393,000 1,393,000 372,200 372,200 104,517 104,517 EB EB EB Insur Exp Impair Loss Loss on LCM Maint Exp 9,000 H1 20,300 16,500 H3 9,000 36,800 36,800 EB EB 9,000 EB EB Loss /Gain on SB2 Inter Exp 9,000 2,660 Interest Income 12,000 F2 BDE 8,400 E 12 11,660 11,660 12,000 12,000 EB 8.400 8,400 EB EB EB Danover Fiber Composites Expanded Accounting Equation Analysis Liabilities Accounts Salaries Interest payable Payable Payable Payable $ 87,500 $ 17,000 $ $ 2.800 Dividends Allowance for DA (10.300) Interest Receivable 4,000 Assets Prepaid Inventory Insurance $ 110,000 $ 20,300 AFS SEBASS $ 398 000 Gross PP&E $ 1,670,000 L-T Note Payable $450,000 Accumulated Total Depreciation Assets S (864,000) $1.519,000 2.256,000 Total Labilities $ 557.100 Cash 62,000 160,500 2,052,000 $ Transaction Balance 630/2018 Al A2 BI B2 B3 Gross AR $ 129,000 2,095,500 (2.052,000) (7,500) 2,000 (2.000) 7,500 (2.000) 2,000 (8.400) (1.411,200) 1,400,000 (1,393,000) (8,400 1.400,000 (1.411,200) (1.393,000) (9,000) 1,400,000 (1.411,200) 1.400.000 (1.411.2009 (9,000) 4,000 8,000 (57,000) (4.000) 4,000 48.000 12,000 (9,000) (20,300) (39,600) (20.300) 39.600 (16.500) (114,000) DI D2 D3 E F1 F2 G HI H2 H3 11 12 3 j1 J2 13 L M NI N2 Balance 6/30/2019 (16,500) 266,000 380,000 266,000 2.660 265.000 2,660 (104,517) (104,517) (17,000) (350,000) (17,000) (17,000) (350,000) (17,000) 22,200 22 200 110,000 (330,000) 220.000 8.000 8,000 (16,400) (16,400) 1293,700) $ 90,600 $ 165,000 $(13200) $ 293,000 (293,700 1.900 $ 716,000 4 000 $ 117.000 (293,700 S (748,517) $1.811,983 $1.811.983 $ 23,100 $ 406,000 S 1,768,000 76,300 $ 22,200 $ 2.660 S 293.000 1293.700 $ 19,060 819,060 Income Statement Common Stock $375,000 Shareholder's Equity Retained Treasury Total Earnings AOCI Stock Equity 691,900 $ (2.000) ${108,000) $ 961,900 2.256,000 2,256,000 Revenue Expense Total Liab & Equity $ 1,519,000 2,256,000 Description 2,256,000 Sales (8,400) (8.400) 8,400 Bad debt expense (8,400) 1,400,000 (1,411,200) (1,393,000) (9,000) (1.393,000) (9,000) (1,393,000) (9.000) 1,393,000 COGS 9,000 Interest expense 12,000 12,000 (9,000) (20,300) 12,000 (9,000) (20,300) 12,000 (9,000) (20,300) 9,000 20,300 interest income Maintenance expense (painting) Insurance expense (16,500) (16,500) 266,000 16,500 Insurance expense (2,660) (104,517) (16,500) (2,660) (104,517) (350,000) (22,200) (104,517) (17,000) (350,000) (350,000) (22,200) 2,660 Interest expense 104,517 Depreciation expense 350,000 Salary expense 22,200 Salary expense Loss/gain on sale of SB 2 8,000 (16,400) 8,000 (16,400) (293,000) 8,000 (16,400) (293,000) $375,000 731,323 $ 6,000 $119,400) S 992,923 (332,423) $ 992,923 (293,700) $ 1,811,983 1,811,983 $ 2.268,000 1,935,577 $ 332,423 Net Income . O Using the direct method, prepare Danover Fiber Composites Statement of Cash Flows for the year ended May 31, 2020. Prepare all required supplemental schedules. Ignore income taxes Your work is to be done using Microsoft Office's EXCEL or an EXCEL compatible program. Use the Case 2_Student Support EXCEL Worksheet to assist you. Submit tot . . CHECK FIGURES Net cash flows provided (used) by: Operating Activities = $390,700 Investing Activities = $(52,000) . Danover Fiber Composites Statement of Cash Flows Year Ended May 31, 2020 Cash Flows from Operating Activities: 2020 2019 Change A1 A2 33 $ Danover Fiber Composites Balance Sheet May 31, Assets Cash Accounts receivable Allowance for doubtful accounts Interest receivable Inventories Prepaid Insurance Total Current Assets 28,600 36.000 (2,900) 90.600 $ 165.000 (13,200) 4,000 117.000 23,100 386,500 62,000 129,000 (10,300 4,000 110,000 20,300 315,000 F1 F2 K $ Cash T Account (Case 1) 62.000 180.500 2,052,000 1411,200 D2 2.000 9,000 4,000 57,000 G 8.000 39,600 H2 110,000.0 114,000 11 17,000 J1 350,000 J2 16,400 M 293,700 N 7,000 2,800 Cash paid to (for) Investment in SeBASS Bonds (AFS) Property, Plant and Equipment, gross Accumulated depreciation Total Assets 2,307,900 406.000 1,768,000 (748,517) $ 1,811,983 $ 398,000 1,870,000 (864,000) 1,519,000 8.000 99,000 115,483 292,983 2.336,500 90.600 Total Net Cash F1 Cash T- Account from Case 1 Solution Cash Flows from Investing Activities: $ 87,500 17,000 Liabilities Accounts payable Salaries payable Interest payable Dividends payable Total Current Liabilities 76,300 $ 22 200 2.660 1,900 103,060 (11.200) 5,200 2,660 (700) Net Cash F1 2,600 107,100 Long-term note payable Total Liabilities 716.000 819,060 450,000 567,100 266,000 Cash Flows from Financing Activities: Net Cash Fi Shareholders' Equity Common stock, no par Retained Earnings Accumulated Other Comprehensive Income Treasury stock Total Shareholder's Equity Total Liabilities and Shareholders' Equity 375,000 375,000 731,323 891,900 8.000 (2,000) (119,400) 992.923 961,900 $ 1.811.983 $ 1,519,000 39,423 8.000 (16.400) Increase in Cash at May 82,000 Cash at May 31, 2020 (103,000) 292.983 Reconciliation of net Income to Cash Flows from Operating Activities Year Ended May 31, 2020 Cash Flows from Operating Activities: $ $ 2.256,000 1.393,000 863,000 Danover Fiber Composites Income Statement For the Year Ended May 31, 2020 Sales Cost of goods sold Gross profit Operating expenses Salary expense Depreciation expense Bad debt expense Insurance expense Maintenance expense Operating income Other (income) expense: Investment & interest income Loss (gain) on sale of Sales Building 2 Interest expense Net Income (loss) $ 372,200 104,517 8.400 36.800 9.000 530,917 332,083 Net change: $ NCF Operating Activities Noncash investing and financing activities: (12,000) 11.660 (340) 332,423 $ 2020 2019 Change $ $ Danover Fiber Composites Balance Sheet May 31, Assets Cash Accounts receivable Allowance for doubtful accounts Interest receivable Inventories Prepaid insurance Total Current Assets 28,600 36,000 (2,900) 90,600 165,000 (13,200) 4,000 117,000 23,100 386,500 62,000 129,000 (10,300) 4,000 110,000 20,300 315,000 7,000 2,800 Investment in SeBASS Bonds (AFS) Property, Plant and Equipment, gross Accumulated depreciation Total Assets 406,000 1,768,000 (748,517) $ 1,811,983 398,000 1,670,000 (864,000) $ 1,519,000 8,000 98,000 115,483 292,983 $ 87,500 17,000 Liabilities Accounts payable Salaries payable Interest payable Dividends payable Total Current Liabilities $ 76,300 22,200 2,660 1,900 103,060 (11,200) 5,200 2,660 (700) 2,600 107,100 266,000 Long-term note payable Total Liabilities 716,000 819,060 450,000 557,100 Shareholders' Equity Common stock, no par Retained Earnings Accumulated Other Comprehensive Income Treasury stock Total Shareholder's Equity Total Liabilities and Shareholders' Equity 375,000 731,323 6,000 (119,400) 992,923 $ 1,811,983 375,000 691,900 (2,000) (103,000) 961,900 $ 1,519,000 39,423 8,000 (16,400) 292,983