ARCTIC COMPAY Income Statement For the Tear tnded December 31, 2013 Sales evenue S0000 Cest of Goods Sold 587400 Wges Expense 209.000 Advertiong xperoe 34100 Deprecation Expere ntwpense 24200 1900 Gain on Sale ef Land 27500 47000 t O0 ARCTIC COMPANY Balance Sheets Dec 31, 2013 Dec. 31, 2012 Assets Cash $30800 55000 Accourts Receable 4200 inentory Prepd Advetsn 134 300 112300 plant Ats 244200 Accumulted Deoreoaon Totl Aets $53000 $40700 Liabilties and Sockhelders touty Accounts Payale s4100 intert Payable 6000 onds Payable Common Stock 209 300 2.00 etaned taming treasury Stock 00 M3400 $40000 Total Liablities and Stockldes touty 000 During 2013, Arctc sold land for $77/000 cash that nad orignaly cost $49500 Arctic aso purchased equipment for cash, acquired treasury stock for cash and ssued bonds payable for cash Accounts payable relate to merchandse purchases aoddng Required a. Calculate the change in cash that occurred during 2013. b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during 2013S b. Use a negative sign with cash outflow answers. ARTIC COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash Flow from Operating Activities Net Loss Add (deduct) items to convert net income to cash basis Depreciation Gain on Sale of Land Accounts Receivable Inventory Prepaid Advertising Accounts Payable Interest Payable Cash Flow Used by Operating Activities Cash Flow from Investing Activities Sale of Land Purchase of Plant Assets Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Bonds Payable Purchase of Treasury Stock Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year s Check Save Answers 4 4 Arctic Company's income statement and comparative balance sheets as ARCTIC COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $800,800 Cost of Goods Sold $587,400 Wages Expense 209,000 Advertising Expense 34,100 Depreciation Expense 24,200 Interest Expense 19,800 Gain on Sale of Land (27,500) 847,000 Net Loss $(46,200) ARCTIC COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $53,900 $30,800 Accounts Receivable 46,200 55,000 Inventory 117,700 124,300 Prepaid Advertising 11,000 14,300 Plant Assets 396,000 244,200 Accumulated Depreciation (85,800) (61,600) Total Assets $539,000 $407,000 Liabilities and Stockholders' Equity Accounts Payable $18,700 $34,100 Interest Payable 6,600 Bonds Payable 220,000 Common Stock 269,500 269.500 Retained Earnings 57,200 103,400 Treasury Stock (33,000) Total Liabilities and Stockholders' Equity $539,000 $407,000 Common Shock 1400 ned Eaming 200 Treury ock tali 00 and Sockolder touty 5407,000 During 2013, Arctic sold land for 77,000 cash thar had originally cost $49,500 Aectic also purchased equipment for cash acquired treasury stock for cash and issued bonds payable for canh Accounts payable relate to merchandise purchases Required Required a. Calculate the change in cash that occurred during 2013. b. Prepare a statement of cash flows using the indirect method. ms a. Change in Cash during 2013 $ @th b. Use a negative sign with cash outflow answers. sion ARTIC COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash Flow from Operating Activities iry re Net Loss $ Add (deduct) items to convert net income to cash basis e Depreciation Gain on Sale of Land Accounts Receivable ems Inventory ail (28 Prepaid Advertising Accounts Payable Interest Payable Slders Cash Flow Used by Operating Activities Cash Flow from Investing Activities Sale of Land Purchase of Plant Assets Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Bonds Payable Purchase of Treasury Stock Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year $ Check 444 44