Prior Comparative Balance Sheets Year Dr. Cr. Cash and cash equivalents $54,600 $ 34,720 $ 0...
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Prior Comparative Balance Sheets Year Dr. Cr. Cash and cash equivalents $54,600 $ 34,720 $ 0 $ Current Year 89,320 Accounts receivable 95,200 0 0 95,200 Merchandise inventory 218,400 19,600 238,000 Investments, long-term 0 28,000 0 28,000 Plant assets 471,800 0 0 505,400 Accumulated depreciation (123,200) 28,000 x 0 (95,200) Total assets $716,800 $ 860,720 Accounts payable $58,800 5,600 0 $ 53,200 Salaries payable 4,200 2,800 0 1,400 Income taxes payable 5,600 0 4,200 9,800 Bonds payable 280,000 0 0 280,000 Premium on bonds payable 11,200 840 0 10,360 Common stock, no par 336,000 0 99,400 435,400 Retained earnings 21,000 0x 0 70,560 Total liabilities and stockholders' equity $716,800 $ 860,720 Cash Flows from Operating Activities Net income Depreciation expense Amortization of bond premium Gain on sale of fixed assets Increase in inventory Decrease in accounts payable Decrease in salaries payable Increase in income taxes payable 77,560 0 16,800 0 0 0 x 0 0 0 0 x 0 0 x 0 0 x 0 0 Cash Flows from Investing Activities Purchase of long-term investments Dividends paid Cash Flows from Financing Activities 0 0 0 Increase in retained earnings x 0 0 Issuance of stock 0 0 Net cash and cash equivalents increase 0 0 x Total LA $ 0 * $ 0 % Check b. Prepare a reconciliation of the total of the three sections of net cash flows from operating, investing, and financing activities to the change in cash and prepare the noncash disclosure note. Cash Flow Reconciliation Net cash provided (used) by operating activities $ Amount 1 x Net cash provided (used) by investing activities Net cash provided (used) by financing activities 10 x 10 x Net change in cash and cash equivalents 10 x Cash and cash equivalents, January 1 10 x Cash and cash equivalents, December 31 Noncash Transaction $ 10 x Amount Purchase of plant assets with stock 0 x Prior Comparative Balance Sheets Year Dr. Cr. Cash and cash equivalents $54,600 $ 34,720 $ 0 $ Current Year 89,320 Accounts receivable 95,200 0 0 95,200 Merchandise inventory 218,400 19,600 238,000 Investments, long-term 0 28,000 0 28,000 Plant assets 471,800 0 0 505,400 Accumulated depreciation (123,200) 28,000 x 0 (95,200) Total assets $716,800 $ 860,720 Accounts payable $58,800 5,600 0 $ 53,200 Salaries payable 4,200 2,800 0 1,400 Income taxes payable 5,600 0 4,200 9,800 Bonds payable 280,000 0 0 280,000 Premium on bonds payable 11,200 840 0 10,360 Common stock, no par 336,000 0 99,400 435,400 Retained earnings 21,000 0x 0 70,560 Total liabilities and stockholders' equity $716,800 $ 860,720 Cash Flows from Operating Activities Net income Depreciation expense Amortization of bond premium Gain on sale of fixed assets Increase in inventory Decrease in accounts payable Decrease in salaries payable Increase in income taxes payable 77,560 0 16,800 0 0 0 x 0 0 0 0 x 0 0 x 0 0 x 0 0 Cash Flows from Investing Activities Purchase of long-term investments Dividends paid Cash Flows from Financing Activities 0 0 0 Increase in retained earnings x 0 0 Issuance of stock 0 0 Net cash and cash equivalents increase 0 0 x Total LA $ 0 * $ 0 % Check b. Prepare a reconciliation of the total of the three sections of net cash flows from operating, investing, and financing activities to the change in cash and prepare the noncash disclosure note. Cash Flow Reconciliation Net cash provided (used) by operating activities $ Amount 1 x Net cash provided (used) by investing activities Net cash provided (used) by financing activities 10 x 10 x Net change in cash and cash equivalents 10 x Cash and cash equivalents, January 1 10 x Cash and cash equivalents, December 31 Noncash Transaction $ 10 x Amount Purchase of plant assets with stock 0 x
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