Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

20XX means last year. 20XY means current year. For December 31, 20XX (last year), the balance sheet is as follows. Sales for 20XY were $314,000,

image text in transcribed
image text in transcribed
image text in transcribed
20XX means last year. 20XY means current year. For December 31, 20XX (last year), the balance sheet is as follows. Sales for 20XY were $314,000, with cost of goods sold being 70 percent of sales. Amortization expense was 10 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 19 percent, while interest on the notes payable was 17 percent. These are based on December 31,20XX, balances. Selling and administrative expenses were $31,100, and the tax rate averaged 18 percent. During 20XY, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 12 percent, and accounts payable increased by 27 percent. A new machine was purchased on December 31 , 20XY, at a cost of $28,000. A cash dividend of $11,500 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $6,904 and bonds payable decreased by 10,520 . The common stock account did not change. Please only enter numbers. No decimal places. No $. No comma. c. Prepare a statement of cash flows for the year ending December 31, 20XY. ( Negative cashflow should be indicated with a minus sign.) Statement of Cashflows For the Year Ended Dec 31, 20XY Operating Activities: Net income Add items not requiring an outlay of cash: Amortization Expense Changes in non-cash working capital: Change in accounts receivable Change in inventory Change in accounts payable Change in notes payable Cash provided by/used in operating activities Investing activities: Change in plant and equipment Cash provided by/used in Investing activities Financing activities: Change in bonds payable Common stock dividends paid Cash provided by/used in financing activities Net change of cash Cash, beginning of year Cash, end of year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Management A Complete Guide

Authors: Gerardus Blokdyk

2019 Edition

0655813640, 978-0655813644

More Books

Students also viewed these Accounting questions

Question

5. Recognize your ability to repair and let go of painful conflict

Answered: 1 week ago