Question
Solpoder Corporation has the following comparative financial statements: Solpoder Corporation Comparative Balance Sheets At December 31, 2015 and 2016 1 2015 2016 2 Assets: 3
Solpoder Corporation has the following comparative financial statements:
Solpoder Corporation |
Comparative Balance Sheets |
At December 31, 2015 and 2016 |
1 |
| 2015 | 2016 |
2 | Assets: |
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3 | Cash | $49,500.00 | $81,000.00 |
4 | Accounts receivable, net | 135,000.00 | 108,000.00 |
5 | Inventory | 27,000.00 | 54,000.00 |
6 | Plant and equipment | 180,000.00 | 180,000.00 |
7 | Accumulated depreciation | (36,000.00) | (45,000.00) |
8 | Total assets | $355,500.00 | $378,000.00 |
9 | Liabilities and equity: |
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10 | Accounts payable | $57,600.00 | $18,000.00 |
11 | Common stock | 190,800.00 | 207,000.00 |
12 | Retained earnings | 107,100.00 | 153,000.00 |
13 | Total liabilities and equity | $355,500.00 | $378,000.00 |
Solpoder Corporation |
Income Statement |
For the Year ended December 31, 2016 |
1 | Sales | $297,000.00 |
2 | Less: Cost of goods sold | (175,500.00) |
3 | Gross margin | $121,500.00 |
4 | Less: Operating expenses | (58,500.00) |
5 | Net income | $63,000.00 |
Dividends of $17,100 were paid. No equipment was purchased or retired during the current year.
Required: | |
Prepare a statement of cash flows using the direct method. |
Amount Descriptions
Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.
Amount Descriptions | |
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Cost of goods sold | |
Net decrease in cash | |
Net increase in cash | |
Operating expenses | |
Payment of dividends | |
Sales | |
Sale of common stock |
Statement of Cash Flows, Direct Method
Complete the statement of cash flows under the direct method. (Note: Begin by entering the applicable income statement amounts. COGS amounts are reflected on two lines. Enter amounts as presented on the Instructions page. Use a minus sign to indicate a negative adjustment or a negative cash outflow. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)
Solpoder Corporation |
Statement of Cash Flows Using Direct Method |
For the Year ended December 31, 2016 |
1 |
| Income Statement | Adjustments | Cash Flows |
2 | Cash flows from operating activities: |
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7 | Net cash from operating activities |
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8 | Cash flows from financing activities: |
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9 |
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10 |
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11 | Net cash from financing activities |
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12 |
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