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Presented below are the financial statements of Marin Company. Prepare a statement of cash flows for Marin Company using the direct method. (Show amounts in
Presented below are the financial statements of Marin Company.
Prepare a statement of cash flows for Marin Company using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Marin Company Comparative Balance Sheets December 31 2017 2016 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total $116,900 $ 66,800 46,760 66,800 200,400 260,520 66,800 93,520 (106,880) 80,160) $370,740 $ 360,720 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 63,460 $50,100 26,720 56,780110,220 46,760 126,920 $370,740 $ 360,720 23,380 60,120 167,000 Marin Company Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses20,04000,100 Income from operations Interest expense Income before income taxes Income tax expense Net income 808,280 584,500 223,780 $60,120 143,620 10,020 133,600 26,720 106,880 Additional data: 1. Depreciation expense was $58,450. 2. Dividends declared and paid were $ 66,800. 3. During the year equipment was sold for $ 28,390 cash. This equipment cost $ 60,120 originally and had accumulated depreciation of $ 31,730 at the time of sale. Further analysis reveals the following. Accounts payable pertain to merchandise suppliers. All operating expenses except for depreciation were paid in cash. All depreciation expense is in the selling expense category. All sales and purchases are on account. 1. 2. 3. 4. Marin Company Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Cash Receipts from Customers 788240 LessCash Payments To Suppliers (597860) For Operating Expenses For Interest (10,020) For Income Taxes Net Cash Provided by Operating Activities
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