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Estes Company listed the net changes in its balance sheet accounts for the past year as follows: Debits > Credits by: Credits > Debits by:
Estes Company listed the net changes in its balance sheet accounts for the past year as follows: |
Debits > Credits by: | Credits > Debits by: | |||
Cash | $ | 82,900 | ||
Accounts receivable | 170,300 | |||
Inventory | $ | 63,600 | ||
Prepaid expenses | 4,200 | |||
Long-term loans to subsidiaries | 84,000 | |||
Long-term investments | 98,000 | |||
Plant and equipment | 316,000 | |||
Accumulated depreciation | 65,900 | |||
Accounts payable | 49,000 | |||
Accrued liabilities | 5,900 | |||
Income taxes payable | 9,600 | |||
Bonds payable | 203,000 | |||
Common stock | 126,000 | |||
Retained earnings | 76,200 | |||
$ | 677,300 | $ | 677,300 | |
The following additional information is available about last years activities: |
a. | Net income for the year was $ ? . |
b. | The company sold equipment during the year for $35,300. The equipment originally cost the company $160,600, and it had $127,100 in accumulated depreciation at the time of sale. |
c. | The company declared and paid $10,800 in cash dividends during the year. |
d. | The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below: |
Beginning | Ending | |||||
Plant and equipment | $ | 2,877,000 | $ | 3,193,000 | ||
Accumulated depreciation | $ | 988,000 | $ | 1,053,900 | ||
e. | The balance in the Cash account at the beginning of the year was $109,400; the balance at the end of the year was $ ? . |
f. | If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. |
Required: |
Using the indirect method, prepare a statement of cash flows for the year. (Amounts to be deducted and negative amounts should be indicated with a minus sign.) |
Estes Company Statement of Cash Flows | ||
Operating activities: | ||
(Click to select)DepreciationDecrease in accounts payableIncrease in accounts receivableIncrease in inventoryNet incomeGain on sale of equipmentDecrease in inventoryProceed from sale of equipmentDecrease in long-term loans to subsidiariesDecrease in accrued liabilitiesIncrease in accounts payableIncrease in accrued liabilitiesDecrease in prepaid expensesDecrease in accounts receivableIncrease in deferred income taxesLoss on sale of equipmentIncrease in prepaid expenses | $ | |
Adjustments to convert net income to cash basis: | ||
(Click to select)Increase in prepaid expensesIncrease in income taxes payableDecrease in inventoryProceed from sale of equipmentDecrease in accrued liabilitiesIncrease in inventoryIncrease in accounts receivableDecrease in income taxes payableIncrease in accounts payableLoss on sale of equipmentGain on sale of equipmentDepreciation | $ | |
(Click to select)Loss on sale of equipmentIncrease in inventoryIncrease in income taxes payableIncrease in accounts receivableDepreciationDecrease in income taxes payableIncrease in prepaid expensesDecrease in inventoryIncrease in accounts payableDecrease in accrued liabilitiesProceed from sale of equipmentGain on sale of equipment | ||
(Click to select)Increase in accounts receivableLoss on sale of equipmentIncrease in prepaid expensesDecrease in income taxes payableProceed from sale of equipmentIncrease in income taxes payableDecrease in inventoryGain on sale of equipmentDecrease in accrued liabilitiesIncrease in accounts payableDepreciationIncrease in inventory | ||
(Click to select)DepreciationIncrease in prepaid expensesDecrease in accrued liabilitiesDecrease in inventoryIncrease in income taxes payableProceed from sale of equipmentDecrease in income taxes payableLoss on sale of equipmentIncrease in accounts payableIncrease in accounts receivableGain on sale of equipmentIncrease in inventory | ||
(Click to select)Increase in inventoryGain on sale of equipmentIncrease in accounts payableDecrease in accrued liabilitiesDepreciationIncrease in accounts receivableDecrease in inventoryLoss on sale of equipmentIncrease in income taxes payableProceed from sale of equipmentIncrease in prepaid expensesDecrease in income taxes payable | ||
(Click to select)Increase in inventoryIncrease in prepaid expensesDecrease in income taxes payableIncrease in accounts payableGain on sale of equipmentDecrease in accrued liabilitiesIncrease in accounts receivableProceed from sale of equipmentDepreciationLoss on sale of equipmentIncrease in income taxes payableDecrease in inventory | ||
(Click to select)Decrease in accrued liabilitiesIncrease in prepaid expensesProceed from sale of equipmentIncrease in inventoryDepreciationIncrease in income taxes payableDecrease in inventoryIncrease in accounts receivableDecrease in income taxes payableLoss on sale of equipmentGain on sale of equipmentIncrease in accounts payable | ||
(Click to select)Decrease in accrued liabilitiesProceed from sale of equipmentIncrease in accounts receivableIncrease in income taxes payableIncrease in inventoryDepreciationDecrease in income taxes payableIncrease in accounts payableDecrease in inventoryGain on sale of equipmentLoss on sale of equipmentIncrease in prepaid expenses | ||
Net cash (Click to select)provided byused in operating activities | ||
Investing activities: | ||
(Click to select)Increase in plant and equipmentDecrease in accounts receivableIncrease in accrued liabilitiesIncrease in common stockCash dividendsIncrease in long-term investmentsIncrease in long-term loans to subsidiariesDecrease in plant and equipmentIncrease in accounts receivableDecrease in long-term loans to subsidiariesProceeds from sale of equipmentDecrease in long-term investments | ||
(Click to select)Increase in common stockDecrease in long-term investmentsDecrease in plant and equipmentIncrease in accounts receivableIncrease in long-term investmentsDecrease in long-term loans to subsidiariesIncrease in accrued liabilitiesDecrease in accounts receivableIncrease in plant and equipmentProceeds from sale of equipmentIncrease in long-term loans to subsidiariesCash dividends | ||
(Click to select)Increase in plant and equipmentDecrease in long-term investmentsIncrease in long-term investmentsIncrease in accrued liabilitiesDecrease in plant and equipmentIncrease in accounts receivableProceeds from sale of equipmentIncrease in common stockCash dividendsDecrease in long-term loans to subsidiariesDecrease in accounts receivableIncrease in long-term loans to subsidiaries | ||
(Click to select)Increase in long-term investmentsProceeds from sale of equipmentIncrease in accounts receivableIncrease in plant and equipmentIncrease in accrued liabilitiesCash dividendsDecrease in long-term investmentsDecrease in accounts receivableIncrease in long-term loans to subsidiariesIncrease in common stockDecrease in long-term loans to subsidiariesDecrease in plant and equipment | ||
Net cash (Click to select)used inprovided by investing activities | ||
Financing activities: | ||
(Click to select)Decrease in accounts payableDecrease in long-term loans to subsidiariesIncrease in accrued liabilitiesIssuance of bonds payableCash dividendsProceeds from sale of equipmentIncrease in accounts payableIssuance of common stockDecrease in accrued liabilitiesIncrease in long-term loans to subsidiariesDecrease in Long-term investmentsAdditions to plant and equipmentAdditions to long-term investmentsDecrease in accounts receivableIncrease in accounts receivable | ||
(Click to select)Additions to plant and equipmentDecrease in long-term loans to subsidiariesIncrease in long-term loans to subsidiariesProceeds from sale of equipmentDecrease in accounts receivableIncrease in accounts receivableIssuance of bonds payableDecrease in accrued liabilitiesCash dividendsIssuance of common stockIncrease in accrued liabilitiesIncrease in accounts payableDecrease in accounts payableDecrease in Long-term investmentsAdditions to long-term investments | ||
(Click to select)Cash dividendsIncrease in accounts payableIssuance of common stockDecrease in accounts payableIncrease in accounts receivableAdditions to plant and equipmentIncrease in long-term loans to subsidiariesIssuance of bonds payableAdditions to long-term investmentsIncrease in accrued liabilitiesDecrease in Long-term investmentsDecrease in long-term loans to subsidiariesProceeds from sale of equipmentDecrease in accrued liabilitiesDecrease in accounts receivable | ||
Net cash (Click to select)used inprovided by financing activities | ||
(Click to select)Net decrease in cashNet increase in cash | ||
Cash balance, beginning of the year | ||
Cash balance, end of the year | $ |
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