Problem 6. - Cash Flow Statement

Baffled Incorporated December 31, 2015 and 2016 Balance Sheets are as follows:

2015 2016

Cash 200,000 120,000

Accounts Receivable 90,000 100,000

Interest Receivable 300,000 183,000

Inventory 558,000 591,000

Prepaid Insurance 183,000 81,000

TOTAL CURRENT ASSETS $1,331,000 $1,075,000

Land 420,000 500,000

Equipment 1,940,000 1,810,000

Accumulated Depreciation (691,000) (705,000)

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TOTAL ASSETS $ 3,000,000 2,680,000

Accounts Payable 444,000 200,000

Salaries Payable 156,000 195,000

Taxes Payable 282,000 177,000

Advance from Customer 226,000 162,000

TOTAL CURRENT LIABILITIES $1,108,000 $734,000

Loan Payable 90,000 280,000

Bonds Payable 324,000 264,000

Note Payable 173,000 128,000

Common Stock 390,000 500,000

Treasury Stock (33,000) (46,000)

$4.25 Preferred Stock 178,000 200,000

Retained Earnings 770,000 620,000

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TOTAL LIABILITIES and OE $ 3,000,000 $ 2,680,000

Additional Information:

1. Baffled paid common stock dividends of $ 153,000 on December 31, 2016.

2. Baffled paid the Preferred Stock dividends on December 31, 2016

3. As of Dec 31, 2016 Baffled had 70000 shares of common stock outstanding,

12000 shares of $4.25 preferred stock, and 6000 shares of treasury stock.

4. During 2016, Baffled sold equipment originally costing $240,000 for $125,000 cash and recorded

a loss of $60,000. They did not sell any land during the year.

1. What was Baffled?s total CASHFLOW for 2016 ?

2. CFO - What was the company?s CASH FLOW FROM OPERATIONS for 2016. YOU MUST SHOW YOUR WORK and NOTE WHERE THE NUMBER COMES FROM. (for example: ?change in A/R? or, ?increase inventory?, etc.) You may also omit $1000?s.

3. CFI - What was the company?s CASH FLOW FROM INVESTING for 2016. YOU MUST SHOW YOUR WORK and NOTE WHERE THE NUMBER COMES FROM. (for example: ?change in A/R? or, ?increase inventory?, etc.) You may omit $1000?s if you choose.

4. CFF - What was the company?s CASH FLOW FROM FINANCING for 2016.

YOU MUST SHOW YOUR WORK and NOTE WHERE THE NUMBER COMES FROM. You may omit $1000?s if you choose.

Problem 6. - Cash Flow Statement Baffled Incorporated December 31, 2015 and 2016 Balance Sheets are as follows: Cash Accounts Receivable Interest Receivable Inventory Prepaid Insurance TOTAL CURRENT ASSETS 2015 200,000 90,000 300,000 558,000 183,000 $1,331,000 2016 120,000 100,000 183,000 591,000 81,000 $1,075,000 Land 420,000 500,000 Equipment 1,940,000 1,810,000 Accumulated Depreciation (691,000) (705,000) ============================================================ TOTAL ASSETS $ 3,000,000 2,680,000 Accounts Payable Salaries Payable Taxes Payable Advance from Customer TOTAL CURRENT LIABILITIES Loan Payable Bonds Payable Note Payable 444,000 156,000 282,000 226,000 $1,108,000 200,000 195,000 177,000 162,000 $734,000 90,000 324,000 173,000 280,000 264,000 128,000 Common Stock 390,000 500,000 Treasury Stock (33,000) (46,000) $4.25 Preferred Stock 178,000 200,000 Retained Earnings 770,000 620,000 ============================================================ TOTAL LIABILITIES and OE $ 3,000,000 $ 2,680,000 Additional Information: 1. Baffled paid COMMON stock dividends of $ 153,000 on December 31, 2016. 2. Baffled paid the PREFERRED Stock dividends on December 31, 2016 3. As of Dec 31, 2016 Baffled had 70000 shares of common stock outstanding, 12000 shares of $4.25 preferred stock, and 6000 shares of treasury stock. 4. During 2016, Baffled sold equipment originally costing $240,000 for $125,000 cash and recorded a loss of $60,000. They did not sell any land during the year. BUSN 501 - Final Exam Page1 1. What was Baffled's total CASHFLOW for 2016 ? BUSN 501 - Final Exam Page1 2. CFO - What was the company's CASH FLOW FROM OPERATIONS for 2016. YOU MUST SHOW YOUR WORK and NOTE WHERE THE NUMBER COMES FROM. (for example: \"change in A/R\" or, \"increase inventory\