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*******HOMEWORK ASSIGNMENT**** HW 1: You have been asked to prepare the Statement of Cash Flows for Bevo Hardware, Inc. Bevo has provided an Income Statement for the year ended September 30, 2018 and Balance Sheet account balances for the years ended September 30, 2018 & September 30, 2017. Details on certain transactions are also provided. 2017 Bevo Hardware, Inc Comparative Balance Sheets (unclassified listing) September 30, 2018 and September 30, 2017 2018 work area coding Cash S 50,000 $ 14,000 Account Receivable 40,000 60,000 Merchandise Inventory 94,000 86,000 Plant Assets 179,000 50,000 Accumulated Depreciation (58.000) (32.000) Land 64,000 95,000 Accounts Payable 39,000 23.000 Accrued Liabilities 11,000 16,000 Notes Payable (long-term) 26,000 15,000 Common Stock 37,000 5,000 Retained Earings 256,000 214,000 Beve Hardware Inc Income Statement condensed) Year Ended September 30, 2018 Sales Revenue $ 210,000 Cost of Goods Sold 70.000 Gross Profit 140,000 Operating Expenses: Salaries and Other Expenses 43,000 Depreciation Expense - Plant Assets 26,000 Total Operating Expenses 69,000 Net Income Before Income Taxes 71,000 Income Tax Expense 17.000 Net Income S.54.000 Details on Transactions: a. Acquisition of plant assets is $129.000. Of this amount $103.000 is paid in cash and $26,000 by signing a note payable. b. Cash receipt from the sale of land totals $31,000. There is no gain or loss. c. Cash receipts from issuance of common stock total $32,000 (no par value) d. Payment of note payable is $15,000 c. Payment of dividends is $12.000 (note: use the steps as shown on the previous pages) All rights reserved: Dr. Robert R. McWhorter -- Financial Accounting: Chapter 14 Bevo Hardware, Inc Statement of Cash Flows Year Ended September 30, 2018 Cash Flows From Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense $ 26,000 Decrease in Accounts Receivable 20.000 Increase in Merchandise Inventory Increase in Accounts Payable Decrease in Accrued Liabilities (5.00 49.000 Net Cash provided by Operating Activities Cash Flows From Investing Activities: Cash paid for Plant Assets 103.000) See details at bottom of page 6 (72,000) Net Cash Provided or (Used) for Investing Activities Cash Flows From Financing Activities: Cash from the sale of Common Stock 32.000 Cash paid on Note Payable X15.000 Net Cash Provided or (Used) for Finanding Activities Net increase or decrease) in Cash Cash Balance, September 30, 2017 Cash Balance, September 30, 2018 5.000 36,000 Non-cash Investing and Financing Activities