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I have the statement of Cash flows almost finished, my only dilemma is with number 6. How would I account for 6. Account for the
I have the statement of Cash flows almost finished, my only dilemma is with number 6. How would I account for "6. Account for the long-term investments was appropriately using the equity method. Boca's shatre of investee net income was $20,000. Other changes in Long-term investments were caused by additional stock purchases. No dividends were received." I have attached the Homework directions and what I have thus far.
Please help, I only have the one thing to finish.
Ashley Stephens 11/29/2016 ACC 303 Homework # 2 Boca Inc. STATEMENT OF CASH FLOWS FOR YEAR ENDED DECEMBER 31, 2018 Cash flows from operating activities Net Income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Loss on sale Increase in Accounts Receivable Decrease in Inventory Increase in pre-paid expenses Decrease in Accounts Payable Increase in accrued expenses payable 154,480 45,500 7,500 (49,800) 9,650 (2,400) (4,700) 7,500 Net cash provided by operating activities Cash flows from investing activities Proceeds from sale Purchase of Plant Assets Increase in Long-Term Investments 122,230 1,500 (120,000) (29,000) Net cash provided by investing activities Cash flows from financing activities Issuance of Bonds Retirement of Bonds Issuance of Common Stock Payment of dividends Cash received from issue of shares (32,250) (147,500) 60,000 (36,000) 45,000 (76,830) 20,000 Net cash provided by financing activities 12,170 Net increase(decrease) in cash Cash, January 1, 2018 12,000 48,800 Cash, December 31, 2018 60,800 Non Cash Investing and financing activities Issuance of Common Stock for Purchase of Plant Asset 42,000 (13,100) ACC 303/503 Homework #2 (Y) OL Boca Inc. Balance Sheets December 31 Assets Cash Accounts Receivable Inventory Prepaid Expenses Long-term Investments Plant Assets Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts Payable Accrued Expenses Payable Dividends Payable Bonds Payable Common Stock Retained Earnings Total 2018 60,800 87,800 102,850 28,400 138,000 347,000 (50,000) 714,850 2017 48,400 38,000 112,500 26,000 109,000 242,500 (52,000) 524,400 67,300 21,000 3,000 170,000 262,000 191,550 714,850 72,000 13,500 146,000 175,000 117,900 524,400 Additional Information: 1. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash. 2. A new plant asset was purchased directly in exchange for common stock valued at $42,000. 3. New bonds were issued at par for $60,000. 4. 2018 Net income was $154,480. 5. A $1,000 prior period adjustment was recorded in 2018 to correct an understatement of depreciation in 2015. The 2017 balance sheet is appropriately restated. 6. Accounting for the long-term investments was appropriately using the equity method. Boca's share of investee net income was $20,000. Other changes in Long-term investments were caused by additional stock purchases. No dividends were received. Required 1. Prepare a 2018 statement of cash flows using the indirect method. Use the textbook format (pages 1,420, 1,423, 1,427). Do not submit supporting computations. SUBMISSION INFORMATION: Submit the assignment in Excel using one page. Include your Name, Date, ACC Course, and Homework #2 in the upper left corner. Submit your assignment through the upload feature within Moodle. Assignments should not be emailed to the instructor. PLEASE BE SURE YOUR ASSIGNMENT IS ACTUALLY SUBMITTED AND NOT IN \"DRAFT\" STATUS. There is a requirement to click a box to acknowledge the submission is your original work to complete the submission process. / var/filecabinet/temp/converter_assets/2b/e8/qattachments_2be8cc71b154053ba5e260255a0b9cf0033 d6be5.docx 4/21/2016 1 Ashley Stephens 11/29/2016 ACC 303 Homework # 2 Boca Inc. STATEMENT OF CASH FLOWS FOR YEAR ENDED DECEMBER 31, 2018 Cash flows from operating activities Net Income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Loss on sale Increase in Accounts Receivable Decrease in Inventory Increase in pre-paid expenses Decrease in Accounts Payable Increase in accrued expenses payable 154,480 (48,500) (7,500) 49,800 9,650 (2,400) (4,700) (7,500) Net cash provided by operating activities Cash flows from investing activities Proceeds from sale Purchase of Plant Assets Increase in Long-Term Investments 143,330 1,500 (120,000) (29,000) Net cash provided by investing activities Cash flows from financing activities Issuance of Bonds Retirement of Bonds Issuance of Common Stock Payment of dividends Cash received from issue of shares (11,150) (167,500) 60,000 (36,000) 45,000 (76,830) 20,000 Net cash provided by financing activities 12,170 Net increase(decrease) in cash Cash, January 1, 2018 12,000 48,800 Cash, December 31, 2018 60,800 Non Cash Investing and financing activities Issuance of Common Stock for Purchase of Plant Asset 42,000 (12,000)Step by Step Solution
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