Compute operating and financing activities, compute the cash flow using indirect method
1.The net income for the year ended on November 30, 2020 for SC Corporation was $135,000. Additional data for the year is provided below. Loss on retirement of debt 514.800 Purchase of property, plant 8! equipment $285,000 Depreciation of property. plant 8: equipment $12,300 Dividends declared $54,000 Decrease in inventory 534.000 Loss on sale of land $16,000 Issue of common shares $11,600 Calculate the increase or decrease in cash from operating activities. Increase or decrease in cash from operating activities = $ ? 2. The Marking Company's cash account decreased by $14,000. Net cash pro- vided by operating activities was $24,000. Net cash used by investing activities was $21,000. Based on this information, calculate the net cash provided {used} by financing activities. Increase or decrease in cash from nancing activities = $ ? 3. Breakwater Boats sells boating accessories. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below. 2017 559.000 \"7.300 Merchandise Inventory 5195.000 Prepaid Expenses $17,200 Total Current Assets $343300 Noncurrent Assets $44000 Equipment I $334,000 Less: Accumulated Depreciation $2t.300 ' Sssema $705,200 liabilities Current Liabilities Accounts Payable 543.600 Notes Payable, Current Portion $6,300 Total Current liabilities 549.900 Notes Payable, LongTerm Portion $68,000 51 17.900 Common Stock $155,000 $155,000 Net Cash Provided (Used) by Financing Activities Answer Retained Earnings $503,205 $432,300 Total Stockholders' Equity $658,205| $587,300 Net increase (decrease) in cash Answer Total Liabilities and Equity $780,505 $705.200 Cash at the Beginning of the Year Answer Cash at the End of the Year Answer Additional Information: During 2018, land was sold for a gain of $6,500. There was no purchase of equipment throughout the year. Breakwater Boats Income Statement For the Year Ended August 31, 2018 $552,000 Cost of Goods Sold $331,200 ross Profit $220.800 Operating Expenses Depreciation Expense $6.300 Other Operating Expenses $67,300 Total Operating Expenses $73,600 Income from Operations $147,200 Other Income and Expenses Gain on Sale of Land $6,500 Income before Income Tax $153,700 Income Tax $53,795 Net Income $99,905 Create the cash flow statement using the indirect method. Breakwater Boats Cash Flow Statement For the Year Ended August 31, 2018 Cash Flow from Operating Activities Net Income Answer Adjustments to Reconcile Net Income to Cash Depreciation Expense Answer Gain on Sale of Land Answer Changes in Operating Assets and Liabilities Increase in Accounts Receivable Answer Increase in Merchandise Inventory Answer Increase in Accounts Payable Answer Net Cash Provided (Used) by Operating Activities Answe Cash Flow from Investing Activities Sale of Land Answer Net Cash Provided (Used) by Investing Activities Answer Cash Flow from Financing Activities Payment of Notes Payable Answerl Payment of Cash Dividend
