Assets Cash Accounts receivable Buildings and equipment Accumulated depreciation- buildings and equipment Patents Company Balance Sheet January 1, 2018 Equities $ 960,000 Accounts payable 864,000 3,600,000 $ 456,000 (1,200,000) 432.000 $4.656.000 Common stock Retained earnings 2,760,000 1.440,000 $4.656,000 $1,200,000 Kiner Company Statement of Cash Flows For the Year Ended December 31, 2018 Increase (Decrease) in Cash Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Increase in accounts receivable $(384,000) Increase in accounts payable 192,000 Depreciationbuildings and equipment 360,000 Gain on sale of equipment (144,000) Amortization of patents 48.000 Net cash provided by operating activities Cash flows from investing activities Sale of equipment 288,000 Purchase of land (600,000) Purchase of buildings and equipment (1.152.000) Net cash used by investing activities Cash flows from financing activities : 72.000 1,272,000 (1,464,000) Payment of cash dividend (360,000) Sale of common stock 960,000 Net cash provided by financing activities 600,000 Net increase in cash 408,000 Cash, January 1, 2018 960,000 Cash, December 31, 2018 $1,368,000 Total assets on the balance sheet at December 31, 2018 are $6,648,000. Accumulated deprecia- T es New.. 12 2 Equities Accounts payable $ 456,000 Assets Cash Accounts receivable Buildings and equipment Accumulated depreciation- buildings and equipment Patents $ 960,000 864,000 3,600,000 (1,200,000) 432.000 $4,656.000 Common stock Retained earnings 2,760,000 1.440.000 $4.656.000 $1,200,000 Kiner Company Statement of Cash Flows For the Year Ended December 31, 2018 Increase (Decrease) in Cash Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Increase in accounts receivable $(384,000) Increase in accounts payable 192,000 Depreciation buildings and equipment 360,000 Gain on sale of equipment (144,000) Amortization of patents 48.000 Net cash provided by operating activities Cash flows from investing activities Sale of equipment 288,000 Purchase of land (600,000) Purchase of buildings and equipment (1.152.000) Net cash used by investing activities Cash flows from financing activities 72.000 1,272,000 (1,464,000) Payment of cash dividend (360,000) Sale of common stock 960,000 Net cash provided by financing activities 600,000 Net increase in cash 408,000 Cash, January 1, 2018 960,000 Cash, December 31, 2018 $1,368,000 Total assets on the balance sheet at December 31, 2018 are $6,648,000. Accumulated deprecia- tion on the equipment sold was $336,000. When the equipment was sold, the Buildings and Equipment account received a credit of a. $288,000. b. S624,000 c. $480,000 d. $336,000. The book value of the buildings and equipment at December 31, 2018 was a. $3,048,000 b. $3,120,000 c. $4,272,000. d. $3,528,000. c. $4,272,000 d. $3,528,000. The accounts payable at December 31, 2018 were a. $264,000. b. $648,000. c. $192,000. d. $888,000
