The 2018 and 2017 comparative balance sheets and 2018 income statements of Perfect Supply Corp. follow:
Perfect Supply had no noncash investing and financing transactions during 2018. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions
Requirements
1. Prepare 's Perfect supply's 2018 statement of cash flows. Use the indirect method to format operating activities.
2. How can the concepts used in this problem help you evaluate an investment?
Requirement 1. Prepare Perfect Supply's 2018 statement of cash flows. Use the indirect method to format operating activities.
Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.)
The 2018 and 2017 comparative balance sheets and 2018 income statement of Perfect Supply Corp. follow: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Perfect Supply had no noncash investing and financing transactions during 2018. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions. Read the requirements. Requirement 1. Prepare Perfect Supply's 2018 statement of cash flows. Use the indirect method to format operating activities. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Perfect Supply Corp. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Net income 63800 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable 14300 24000 Decrease in inventories Increase in accounts payable Decrease in salary payable Decrease in other accrued liabilities Choose from any list or enter any number in the input fields and then continue to the next question. The 2018 and 2017 comparative balance sheets and 2018 income statement of Perfect Supply Corp. follow: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Perfect Supply had no noncash investing and financing transactions during 2018. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions. Read the requirements Decrease in other accrued liabilities Net cash provided by (used for) operating activities Cash flows from investing activities: Purchase of land Purchase of equipment Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Requirement 2. How can the concepts used in this problem help you evaluate an investment? Choose from any list or enter any number in the input fields and then continue to the next question. Perfect Supply Corp. Income Statement Year Ended December 31, 2018 Revenues: Sales revenue $ 445,000 Expenses: Cost of goods sold 187,000 Salary expense 76,500 Depreciation expense 14,300 Other operating expense 50,400 Interest expense 24,000 Income tax expense 29,000 Total expenses 381,200 $ 63,800 Net income 2018 Perfect Supply Corp. Comparative Balance Sheets December 31, Increase 2017 (Decrease) Current assets: Cash and cash equivalents $ 17,900 $ 1,000 $ 16,900 Accounts receivable 52,200 44,000 8,200 Inventories 66,200 67,500 (1,300) Prepaid expenses 2,600 3,900 (1,300) Plant assets: 61,700 32,600 29,100 Equipment, net 63,200 49,600 13,600 Total assets $ 263,800 $ 198,600 $ 65,200 Current liabilities: Accounts payable 35,300 $ 26,900 $ 8,400 Salary payable 26,000 35,000 (9,000) Land 8,400 35,300 $ 26,000 22,500 26,900 $ 35,000 23,800 (9,000) (1,300) Total assets Current liabilities: Accounts payable Salary payable Other accrued liabilities Long-term liabilities: Notes payable Stockholders' equity: Common stock, no-par Retained earnings 50,000 32,000 18,000 88,800 41,200 64,500 16,400 24,300 24,800 Total liabilities and stockholders' equity 263,800 198,600 $ 65,200
