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A simplified balance sheet for Planet Inc. contain the following amounts at the end of 2019 and 2020. Planet Inc. Balance Sheet As at May
A simplified balance sheet for Planet Inc. contain the following amounts at the end of 2019 and 2020. Planet Inc. Balance Sheet As at May 31 Assets 2020 2019 Current Assets Cash $18,000 $8,600 Accounts Receivable $13,600 $5,600 Prepaid Expenses $2,400 $1,800 Merchandise Inventory $24,600 $15,500 Total Current Assets $58,600 $31,500 Long-Term Assets Equipment $178,000 $166,000 Less: Accumulated Depreciation $-25,400 $-19,300 Total Long-Term Assets $152,600 $146,700 Total Assets $211,200 $178,200 Liabilities Current Liabilities $20,800 $20,800 Long-Term Liabilities $28,000 $40,000 Total Liabilities $48,800 $60,800 Shareholders' Equity Contributed Capital Preferred Shares $58,000 $58,000 Common Shares $27,000 $6.000 Preferred Shares $58,000 $58,000 Common Shares $27,000 $6,000 Total Contributed Capital $85,000 $64,000 Retained Earnings $77,400 $53,400 Total Shareholders' Equity $162,400 $117,400 Total Liabilities and Equity $211,200 $178,200 Assume current liabilities include only items from operations (eg, accounts payable, taxes payable). Long-term liabilities include items from financing (eg bonds and other long-term liabilities). Note that the company did not sell any equipment and did not borrow any additional long-term liabilities throughout the year. Prepare the cash flow statement for 2020 using the indirect method. Assume no dividends were declared or paid in 2020. Do not enter dollar signs or commas in the input boxes Use the negative sign for a decrease in cash. Planet Inc. Cash Flow Statement For the Year Ended May 31, 2020 Cash Flow from Operations Net Income Adjustments to reconcile Net Income to Cash Depreciation Expense Change in Operating Assets and Liabilities Increase in Accounts Receivable Increase in Prepaid Expenses Increase in Merchandise Inventory 8000 -8000 Net Income Adjustments to reconcile Net Income to Cash Depreciation Expense Change in Operating Assets and Liabilities Increase in Accounts Receivable Increase in Prepaid Expenses Increase in Merchandise Inventory Net Cash Provided (Used) by Operating Activities Cash Flow from Investing Activities Purchase of Equipment Net Cash Provided (Used) by Investing Activities Cash Flow from Financing Activities. Issuance of Common Shares Repayment of Long-Term Liabilities Net Cash Provided (Used) by Financing Activities Net Increase (Decrease) in Cash Cash at the Beginning of the Year Cash at the End of the Year -12000 -12000 21000 x
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