Question
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 | ||
| 2020 | 2019 | |
| Assets | ||
| 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 |
| 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 (e.g., accounts payable, taxes payable). Long-term liabilities include items from financing (e.g. 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 | Answer | |
| Adjustments to reconcile Net Income to Cash | ||
| Depreciation Expense | Answer | |
| Change in Operating Assets and Liabilities | ||
| Increase in Accounts Receivable | Answer | |
| Increase in Prepaid Expenses | Answer | |
| Increase in Merchandise Inventory | Answer | |
| Net Cash Provided (Used) by Operating Activities | Answer | |
| Cash Flow from Investing Activities | ||
| Purchase of Equipment | Answer | |
| Net Cash Provided (Used) by Investing Activities | Answer | |
| Cash Flow from Financing Activities | ||
| Issuance of Common Shares | Answer | |
| Repayment of Long-Term Liabilities | Answer | |
| Net Cash Provided (Used) by Financing Activities | Answer | |
| Net Increase (Decrease) in Cash | Answer | |
| Cash at the Beginning of the Year | Answer | |
| Cash at the End of the Year | Answer | |
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