September 30 20x3 20x4 $15,000 $8,200 $5,000 $15,000 $20,500 $7,300 $8,000 $15,000 Current Liabilities Accounts Payable Accrued Expenses Dividends Payable Current Portion of Long-Term Debt Long-Term Debt Mortgage Payable Notes Payable Owners' Equity Common Stock Retained Earnings $300,000 $200,000 $285,000 $150,000 $100,000 $80,000 $200,000 $120,000 Additional information: 1.Assume that all current liabilities at the beginning of the year ended September 30, 20X4, were paid during the 20x4 fiscal year. 2.Net income for the year ended September 30, 20X4, totaled $60,000. The only other activity affecting Retained Earnings was Dividends Declared of $20,000. 3.The current portion of LTD relates to the Mortgage Payable account. 4.No portion of the Notes Payable was paid during the year. 5.Common stock of $100,000 was exchanged for a note payable of $100,000 on January 4, 20X4. 6.Any unexplained changes in the above accounts are due to single cash transactions. Prepare a schedule showing the cash flow from financing activities. Answer Cash Flows from Financing Activities: Account Analysis Current Portion of LTD 12/31/3 Balance Payment of Long-Term Debt Reclassification = 12/31/x4 Balance Payment of Long-Term Debt Borrowing-Notes Payable Payment of Dividends $15,000 $15,000 $15,000 Net Cash Flows from Financing Activities Notes Payable 12/31/X3 Balance $200,000 Conversion to Common Stoc $100,000 Borrowing = 12/31/x4 Balance $150,000 Retained Earning Balanace 12/31/X3 Balance + Net Income Dividend Declared = 12/31/x4 Balance $80,000 $60,000 $120,000 $5,000 Dividends Payable Balanace 12/31/X3 Balance + Dividend Declared Dividend Paid = 12/31/x4 Balance $8,000