Fill the worksheet and prepare the statement of cash flows using the indirect method in good form with all necessary disclosures, including disclosures about non-cash financing and investing activities, based on the following information:
Account Balances June 30, 2017 June 30, 2018 Debits Cash 361,700 100,000 ccounts Receivable Marketable Securities (at costh Allowance for Change in Value Conslruclion in Prooess Prepaid Expenses Investments (long-term) Leased Equipment 88O,5SD 125,000 13,000 ,800 405,000 10,000 13,500 20,000 1,500 168,750 30,000 5,375 10,500 Deferred lax assel Land Discount on Bonds Payable Totals 10,5400 1,315 1,482,855 734,525 Credits Allowance for doubtful accounts Accounts Payable Deferred tax liability Income Taxes Payable Note Payable (long-term) Accumulated Depreciation on Building Accumulaled Deprccialion on Lcased Asscl Lease oblieation Interest payable on ease abligation Interest payable (Bonds) Bonds payable Billings on contruction in process Perision liability Convertible preferred stock, $i00 par Common Stock, $10 par Additional Paid-in Capital Unrealized Increase in Value ot Marketable Securities Relaincd Earnings Totals 6,000 5 4,500 210,000 3,3AID 9,000 87,500 3,500 3,500 2,500 3,000 18,000 1,800 1,800 45,000 325,000 400,000 150,000 154,000 14,000 1,500 297,325 734,525 24,500 13,700 1,800 421,455 1,482,855 Additlonal information: a. Dividends declared and paid totaled $650 b. 300 shares of common slock al par) wcrc issucd lor cash. c. On July 1,2017, convertible preferred stock that had originally been issued at pavalue were converted into 500 shares of common stack. The book value methad was used to account for the d. The lone lcrm nol payable was paid by issuine 250 shares of cormon slock a the beeinninof the fiscal year e. Short-term marketable securities were purchased at a cost of $1,300. The portfolio was increased by 300 to a $14,800 fair value at year-end by adjusting the related allowance account. f. During the year, a 30% interest in Ricochet Co. was purchased as an investment for $9,500. Ricochet reported $20,000 in net income for the year and paid dividends of $2,000 to Smart. g. $5,000 ot accounts receivable were written off as uncollectible during the year h. Doosler's invenlory vonsisls ol Conslruclion in Procoss in cx of the Billines on Construction-in-Process account balance i. A building was destrayed by fire during the year and insurance proceeds of $26,000 were collected j. The 12% bonds payable were issued on February 28, 2018, al 97 . They malure on February 28, 2028 The company uses the straight line method to amortize bond premiurns and discournts. k. Boaster recorded n expense of $350,000 far the year. I. A lease agreement was signed on July 1st, 2017 for the use of equipment worth $20,000. The company delermined lhal the ransaclion should be rccorded asa capilal lcasc BOOSTER CONSTRUCTION COMPANY Cash Flows Worksheet For Year Ended June 30, 2018 Balances Worksheet Entries Debit Change 6/30/2017 6/30/2018 Increase (Decrease Account Titles Debits Credit Noncash Accounts Credits Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Investing and Financing Activities Not Affecting Cash Net Increase in Cash Totals Booster Construction Company Statement of Cash Flows For Year Ended June 30, 2018 Operating Activities Net Income Adjustments for noncash income items: Adjustments from cash flow effect from working capital items: Net cash provided (used) by operating activities Investing activities: Net cash provided (used) by investing activities Financing Activities Net cash provided (used) by financing activities Net increase in cash (see Schedule 1) Cash, June 30, 2017 Cash, June 30, 2018 Schedule 1: Investing and Financing Activities Not Affecting Cash
