Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Everything on the chart is correct. I need help filling in the blanks. Hunter Company is developing its annual financial statements at December 31. The
Everything on the chart is correct. I need help filling in the blanks.
Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment $55,610 35,100 38,100 120,900 41,400 $208,310 $ 22,500 38,000 45,000 111,000 34,500 $182,000 $ 26,500 1,000 57,000 69,000 28,500 $182,000 Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 30,400 710 47,000 93,500 36,700 $208,310 Total Liabilities and Stockholders Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income $109,000 65,500 30,600 $ 12,900 Additional Data: a. Bought equipment for cash, $9,900 b. Paid $10,000 on the long-term note payable. c Issued new shares of stock for $24,500 cash. d. Declared and paid a $4,700 cash dividend. e. Other expenses included depreciation, $6,900; salaries and wages, $10,900; taxes, $3,900; utilities, $8,900 f Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. HUNTER COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities et Income $ 12,900 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Decrease in S $ 6,900 2,900 6,900 3,900 (290) alaries and Wages Payable 20,310 Net Cash Provided by Operating Activities 33,210 Cash Flows from Investing Activities Cash Payments to Purchase Equipment (9,900) (9,900) Cash Flows from Financing Activities Cash Payments on Notes Payable (long-term) Cash Payments for Dividends (10,000) (4,700) Cash Receipts from Issuing Stock 24,500 Net Cash Provided by Financing Activities 9,800 Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started