Caitlin has asked for your help in preparing her statement of cash flows for 2016 (Only operating activities) She is able to present you with condensed balance sheets and some additional information as below The Warmhearted Caf Condensed Balance Sheets December 31, 2015 and 2016 Description 2015 2016 Cash $9,000 8,000 Accounts Receivable 24,000 25,000 Investments 11,000 15,000 Equipment 170,000 220,000 Accumulated Depreciation (40,000) (50,000) Total Assets $174,000 $218,000 Current Liabilities Accounts Payable $5,000 $10,000 Mortgage Payable (current) 14,000 12,000 Dividend Payable 15,000 5,000 Noncurrent Liabilities Mortgage Payable 105,000 $125,000 Common Stock 25,000 35,000 Retained Earnings 10,000 30,000 Total Liabilities and Owners' Equity $174,000 $217,000 Additional Information Equipment costing $32,200 and fully depreciated (to $0) was sold for $2,500 Long term investments costing $10,000 were sold for $15,000 Income before gain on the sale of equipment for 2016 totaled $47,500 The firm's average tax rate is 20 percent Determine Net Income for the Warmhearted Caf What is your answer Group of answer choices $40,000 $38,000 $217,500 $4,000 Determine whether Caitlin has gain or loss from sale of investment How much is the gain loss Group of answer choices Loss, $2,500 Gain, $5,000 Loss, $5,000 Gain, $2,500 You want to present the information about accounts receivable when preparing the statement of cash flow for the Warmhearted Caf Which one is correct Group of answer choices Decrease in accounts receivable $1,000 Decrease in accounts receivable ($1,000) Increase in accounts receivable $1,000 Increase in accounts receivable ($1,000) Determine the Net Cash Flows from Operating Activities for the fiscal year ended 12 13 16 for the Warmhearted Caf What is your answer ( Hint consider net income, depreciation, gains from sale of investment and equipment, increase decrease in accounts receivable and payable) Group of answer choices $81,500 $46,500 $86,500 $191,000

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Caitlin has asked for your help in preparing her statement of cash flows for 2016 (Only operating activities). She is able to present you with

Caitlin has asked for your help in preparing her statement of cash flows for 2016 (Only operating activities). She is able to present you with condensed balance sheets and some additional information as below:

The Warmhearted Caf

Condensed Balance Sheets

December 31, 2015 and 2016

Description	2015	2016
Cash	$9,000	8,000
Accounts Receivable	24,000	25,000
Investments	11,000	15,000
Equipment	170,000	220,000
Accumulated Depreciation	(40,000)	(50,000)
Total Assets	$174,000	$218,000
Current Liabilities:
Accounts Payable	$5,000	$10,000
Mortgage Payable (current)	14,000	12,000
Dividend Payable	15,000	5,000
Noncurrent Liabilities:
Mortgage Payable	105,000	$125,000
Common Stock	25,000	35,000
Retained Earnings	10,000	30,000
Total Liabilities and Owners' Equity	$174,000	$217,000

Additional Information:

Equipment costing $32,200 and fully depreciated (to $0) was sold for $2,500.
Long-term investments costing $10,000 were sold for $15,000.
Income before gain on the sale of equipment for 2016 totaled $47,500. The firm's average tax rate is 20 percent.

Determine Net Income for the Warmhearted Caf. What is your answer?

Group of answer choices

$40,000

$38,000

$217,500

$4,000

Determine whether Caitlin has gain or loss from sale of investment. How much is the gain/loss?

Group of answer choices

Loss, $2,500

Gain, $5,000

Loss, $5,000

Gain, $2,500

You want to present the information about accounts receivable when preparing the statement of cash flow for the Warmhearted Caf. Which one is correct?

Group of answer choices

Decrease in accounts receivable $1,000

Decrease in accounts receivable ($1,000)

Increase in accounts receivable $1,000

Increase in accounts receivable ($1,000)

Determine the Net Cash Flows from Operating Activities for the fiscal year ended 12/13/16 for the Warmhearted Caf. What is your answer? (Hint: consider net income, depreciation, gains from sale of investment and equipment, & increase/decrease in accounts receivable and payable)

Group of answer choices

$81,500

$46,500

$86,500

$191,000