Question
Daimon Inc began operations on January 1, 2014. Its adjusted trial balance at December 31, 2015 and 2016 is shown below. Other information regarding Bentley
Daimon Inc began operations on January 1, 2014. Its adjusted trial balance at December 31, 2015 and 2016 is shown below. Other information regarding Bentley Inc. and its activities during 2016 follow in (a) through (f) :
- Assume all accounts have normal balances.
- $9,000 of the long-term notes payable will be paid during 2017.
- Equipment was sold for cash of $47,500.
- Old machinery was sold for cash of $12,800. New machinery was purchased for $49,000 cash.
- Common shares were issued for cash.
- Cash dividends were declared and paid.
Using the information provided, prepare a statement of cash flows (using the indirect method) for the year ended December 31, 2016. Assume that interest is treated as an operating activity and dividends paid as a financing activity. For simplicity, ignore the required disclosures for cash flows associated with interest paid and received, dividends paid and received and income taxes as well as any non-cash disclosures that may have occurred in the current year. Please make sure your final answer(s) are accurate to 2 decimal places.
Account | Dec 31 2016 | Dec 31 2015 |
Accounts Payable | 35040 | 46000 |
Accounts receivable | 58400 | 58000 |
Accumulated Depreciation, Equipment | 55000 | 42000 |
Accumulated Depreciation Machinery | 10700 | 82000 |
Allowance for doubtful accounts | 6400 | 2000 |
Depreciation expense, equipment | 10200 | 10200 |
Depreciation expense, machinery | 8600 | 8600 |
Cash | 361000 | 330000 |
Dividends | 56000 | 56000 |
Equipment | 47300 | 143000 |
Machinery | 73100 | 116000 |
Inventory | 13230 | 15000 |
Long-term notes payable | 46380 | 60000 |
Other expenses (Inluding lossess) | 640000 | 25000 |
Retained Earnings | 75000 | 60000 |
Revenues (including gains | 688800 | 1148000 |
Common Shares | 361000 | 321000 |
Unearned Revenue | 39010 | 34000 |
Statement Of Cash Flows For the year ended December 31,2016 | ||
Cash flows from operating activities | ||
Net income | 30000 | |
Depreciation Exp |
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Decrease in account receivable |
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Decrease in inventory |
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Decrease in account payable |
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Increase in unearned revenues |
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Loss on sale of equipment |
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Gain on sale of machinery |
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Net cash from operating activities |
| 30000+(19320) = 49320 |
Cash flows from investing activities |
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Cash paid for machinery |
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Cash received from sale of equipment |
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Cash received from sale of machinery |
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Net cash from investing activities |
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Cash flows from financing activities |
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Cash received from common share issuance |
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Repayment of long-term note |
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Cash paid for dividends |
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Net cash from financing activities |
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Cash and cash equivalents (beginning of year) |
| 330000 |
Cash and cash equivalents (end of year) |
| 361000 |
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