Comparative balance sheets for Byron Manufacturing as of December 31, 20Y8 and 20Y7 are shown. Complete the Changes column to determine net cash flows during the year.
Comparative balance sheets for Byron Manufacturing as of December 31, 2018 and 2017 are shown. Complete the Changes column to determine net cash flows during the year. Byron Manufacturing Balance Sheets As of December 31, 20Y8 and 20Y7 Assets 20YB 20Y7 Current assets: Cash 5,420 9,020 Accounts receivable 10,410 8,950 Inventory 19,990 18,610 Total current assets 35,820 36,580 Property, plant, and equipment Building 499,000 499,000 Equipment 276,000 272,100 775,000 771,100 Accumulated depreciation (147,550) (120,750) Net property, plant, and equipment 627,450 650,350 Total assets 663,270 686,930 Liabilities and Equity Current liabilities: Accounts payable 55,130 36,280 Salaries payable 9,340 11,740 Income taxes payable 1,060 9,930 Total current liabilities 65,530 57,950 Long-term liabilities: Bonds payable 355,000 395,000 Equity: Common stock 180,000 149,000 Retained earnings 62,740 84.980 Total equity 242,740 233,980 Total liabilities and equity 663,270 686,930 Additional information needed to prepare the statement of cash flows using the indirect method: 1. Net income was $2,700 2. Byron paid $24,940 in cash dividends 3. 4. Byron issued $48,690 in bonds payable for cash 5. Byron retired $88,690 in bonds with cash No fixed assets were sold or disposed of during the period Now prepare the statement of cash flows for Byron Manufacturing using the indirect method. Select Increase or Decrease and enter the amounts.Additional information needed to prepare the statement of cash flows using the indirect method: Net income was $2,700 Byron paid $24,940 in cash dividends Byron issued $48,690 in bonds payable for cash . Byron retired $88,690 in bonds with cash 5. No fixed assets were sold or disposed of during the period Now prepare the statement of cash flows for Byron Manufacturing using the indirect method. Select Increase or Decrease and enter the amounts. Byron Manufacturing Spreadsheet to Prepare the Statement of Cash Flows For the Year Ended December 31, 20Y8 Beginning Increase/Decrease Ending Balance Sheet Accounts Balance Debit Credit Balance Cash (m) Accounts receivable 8,950 1,460 10,410 Inventory 18,610 (1) 19,990 Building 499,000 499,000 Equipment 272,100 276,000 Accumulated depreciation 120,750 (c) 147,550 Accounts payable 36,280 18,850 () 55,130 Salaries payable 11,740 (k) 9,340 Income taxes payable 9,930 (1) 8,870 1,060 Bonds payable 395,000 (e) (d) 355,000 Common stock 149,000 31,000 (F) 180,000 Retained earnings 84,980 (9) (a) 62,740 Increase/Decrease in Cash Statement of Cash Flows Debit Credit Cash flow from operating activities Net income (a) Adjustments to reconcile net income to net cash flow from operating activities Depreciation expense (c)in Cash Statement of Cash Flows Debit Credit Cash flow from operating activities Net income (a) Adjustments to reconcile net income to net cash flow from operating activities Depreciation expense (c) Increase in accounts receivable 1,460 (h) Increase in inventory Increase in accounts payable (j) 18,850 Decrease in salaries payable (k) Decrease in income taxes 8,870 (1) payable Cash flows from investing activities Purchase equipment (b) Cash flows from financing activities Issued bonds payable (d) Retired bonds payable (e) Issued common stock (f) 31,000 Paid dividend (9) Net increase (decrease) in cash (m) 263,280 263,280Now you can prepare the Statement of Cash Flows using the indirect method. Fill in the Statement based on the spreadsheet. Select Increase or Decrease and enter the amounts. Byron Manufacturing Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Increase in accounts receivable (1,460) Increase in inventory Increase in accounts Payable 18,850 Decrease in salaries payable Decrease in income taxes payable (8,870) 31,540 Net cash provided by operating activities $ 34,240 Cash flows from investing activities: Purchase of equipment $ (3,900) Net cash used for investing activities (3,900) Cash flows from financing activities: Proceeds from issuance of bonds $ payable Retired bonds payable (88,690) Issued common stock Payment of dividends (24,940) Net cash used for financing activities (33,940) Net increase (decrease) in cast S Cash, 1/1/20YB Cash, 12/31/208 The major causes of differences between Byron Manufacturing's net income and net cash from operating activities are the noncash depreciation expense v and the increase in accounts payable v (showing that the company paid for fewer expenses than were expensed on the income statement)