Construct the statement of cash flows: both indirect and direct method:
December 31 2015 ASSETS Current assets Cash Accounts receivable Inventory 462,065 15,785 220,010 697,860 Total current assets Property, plant & equip 1,400,000 (485,000) 520,000 (185,000) Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation (Equipment) Right-of-use Asset Less: Accumulated Amortization ROU Asset Total property, plant & equipme $ 1,250,000 $1,947,860 Total assets LIABILITIES Current liabilities Accounts Payable Interest Payable Long-term liabilities 106,190 Notes Payable Less: Discount on Notes Payable Lease Liability Total liabilities 106,190 STOCKHOLDERS' EQUITY 61,000 1,600,000 (200,000) 380,670 Total stockholders' equity 1,841,670 Total Liabilities and equity1947,860 Common Stock, $1 par APIC Treasury Stock Retained earnings 1 Balance Sheet 2016: December 31,2016 2 ASSETS 3 Current assets 4 Caslh 5 Accounts receivable 6 Inventory $ 907,350 $23,625 $ 445,300 $1,376,275 Total current assets 8 Property, plant & equip 9 Building 10 Less: Accumulated depreciation (Building) 11Equipment 1,800,000 (45,000) Less: Accumulated depreciation (Equipment) 12 218,843 (54,711) $1,919,132 $3,295,407 13 Right-of-use Asset Less: Accumulated Amortization (ROU 14 Asset) 15Total property, plant & equipment 16 Total assets 17 18 LIABILITIES 19 Current liabilities 20 Accounts Payable 21 Interest Payable 22 Long-term liabilities 23 Notes Payable 24 Less: Discount on Notes Payable 25 Lease Liability 26 Total liabilities 27 28 STOCKHOLDERS' EQUITY 29 Common Stock, $1 par 30 APIC 31 Treasury Stock 32 Retained earnings 33 Total stockholders' equity 34 35 36 37 $88,125 $10,413 $ 2,000,000 $ (380,000) $ 138,843 $1,857,381 $61,000 $1,622,500 $ (310,500) $65,026 $1,438,026 $3,295,407 Total Liabilities and equity Statement of Cash Flows For the year ending on December 31, 2016 2016 Operating Activities INDIRECT METHOD Net Income Remove non-cash income items Depreciation Expense Amortization Expense Remove non-operating gains and losses: Gain on Sale of Equipment Loss on Sale of Building Adjust for changes in working capital accruals Cash used for Operating Activities Investing Activities Cash provided by Investing Activities Financing Activities Cash Paid for Share Repurchases (110,500) Cash used for Financing Activities Net Change in Cash Flows Cash and Cash Equivalents, 1/1/2016 (110,500) (110,500) 462,065 Cash and Cash Equivalents, 12/31/2016 907,350 Non-cash Investing and Financing Activities Operating Activities-DIRECT METHOD 2016 Cash used for Operating Activities December 31 2015 ASSETS Current assets Cash Accounts receivable Inventory 462,065 15,785 220,010 697,860 Total current assets Property, plant & equip 1,400,000 (485,000) 520,000 (185,000) Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation (Equipment) Right-of-use Asset Less: Accumulated Amortization ROU Asset Total property, plant & equipme $ 1,250,000 $1,947,860 Total assets LIABILITIES Current liabilities Accounts Payable Interest Payable Long-term liabilities 106,190 Notes Payable Less: Discount on Notes Payable Lease Liability Total liabilities 106,190 STOCKHOLDERS' EQUITY 61,000 1,600,000 (200,000) 380,670 Total stockholders' equity 1,841,670 Total Liabilities and equity1947,860 Common Stock, $1 par APIC Treasury Stock Retained earnings 1 Balance Sheet 2016: December 31,2016 2 ASSETS 3 Current assets 4 Caslh 5 Accounts receivable 6 Inventory $ 907,350 $23,625 $ 445,300 $1,376,275 Total current assets 8 Property, plant & equip 9 Building 10 Less: Accumulated depreciation (Building) 11Equipment 1,800,000 (45,000) Less: Accumulated depreciation (Equipment) 12 218,843 (54,711) $1,919,132 $3,295,407 13 Right-of-use Asset Less: Accumulated Amortization (ROU 14 Asset) 15Total property, plant & equipment 16 Total assets 17 18 LIABILITIES 19 Current liabilities 20 Accounts Payable 21 Interest Payable 22 Long-term liabilities 23 Notes Payable 24 Less: Discount on Notes Payable 25 Lease Liability 26 Total liabilities 27 28 STOCKHOLDERS' EQUITY 29 Common Stock, $1 par 30 APIC 31 Treasury Stock 32 Retained earnings 33 Total stockholders' equity 34 35 36 37 $88,125 $10,413 $ 2,000,000 $ (380,000) $ 138,843 $1,857,381 $61,000 $1,622,500 $ (310,500) $65,026 $1,438,026 $3,295,407 Total Liabilities and equity Statement of Cash Flows For the year ending on December 31, 2016 2016 Operating Activities INDIRECT METHOD Net Income Remove non-cash income items Depreciation Expense Amortization Expense Remove non-operating gains and losses: Gain on Sale of Equipment Loss on Sale of Building Adjust for changes in working capital accruals Cash used for Operating Activities Investing Activities Cash provided by Investing Activities Financing Activities Cash Paid for Share Repurchases (110,500) Cash used for Financing Activities Net Change in Cash Flows Cash and Cash Equivalents, 1/1/2016 (110,500) (110,500) 462,065 Cash and Cash Equivalents, 12/31/2016 907,350 Non-cash Investing and Financing Activities Operating Activities-DIRECT METHOD 2016 Cash used for Operating Activities
