Question
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
Dec. 31, 20Y3 | Dec. 31, 20Y2 | ||||
Assets | |||||
Cash | $283,260 | $263,500 | |||
Accounts receivable (net) | 102,610 | 94,640 | |||
Inventories | 289,660 | 280,190 | |||
Investments | 0 | 108,550 | |||
Land | 148,580 | 0 | |||
Equipment | 319,600 | 247,720 | |||
Accumulated depreciationequipment | (74,820) | (66,800) | |||
Total assets | $1,068,890 | $927,800 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $193,470 | $182,780 | |||
Accrued expenses payable (operating expenses) | 19,240 | 24,120 | |||
Dividends payable | 10,690 | 8,350 | |||
Common stock, $10 par | 57,720 | 45,460 | |||
Paid-in capital: Excess of issue price over par-common stock | 216,980 | 126,180 | |||
Retained earnings | 570,790 | 540,910 | |||
Total liabilities and stockholders equity | $1,068,890 | $927,800 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
- The investments were sold for $127,000 cash.
- Equipment and land were acquired for cash.
- There were no disposals of equipment during the year.
- The common stock was issued for cash.
- There was a $73,490 credit to Retained Earnings for net income.
- There was a $43,610 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Cash flows from operating activities: | ||
Cash paid for dividendsCash paid for landCash received from sale of investmentsCash received from sale of common stockLoss on sale of investmentsNet income | $- Select - | |
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Accumulated depreciationCash paid for landCash paid for dividendsCash received from sale of common stockDepreciationRetained earnings | - Select - | |
Cash paid for dividendsCash received from the sale of common stockCash received from net incomeGain on sale of investmentsLoss on sale of investmentsRetained earnings | - Select - | |
Changes in current operating assets and liabilities: | ||
Decrease in accounts receivableDecrease in accounts payableDecrease in inventoriesDepreciationIncrease in accounts receivableLoss on sale of investments | - Select - | |
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesGain on sale of investmentsIncrease in accrued expensesIncrease in inventories | - Select - | |
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in accounts payableIncrease in accrued expensesLoss on sale of investments | - Select - | |
Decrease in accounts payableDecrease in accrued expenses payableDecrease in dividends payableDepreciationIncrease in accrued expenses payableIncrease in land | - Select - | |
Net cash flow from operating activities | $fill in the blank 15 | |
Cash flows from investing activities: | ||
Cash received from gain on sale of investmentsCash received from loss on sale of investmentsCash received from net incomeCash received from sale of common stockCash received from sale of investmentsCash received from retained earnings | $- Select - | |
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for dividendsCash paid for purchase of land | - Select - | |
Cash paid for accounts receivableCash paid for accrued expensesCash paid for accumulated depreciationCash paid for inventoriesCash paid for purchase of equipmentCash paid for retained earnings | - Select - | |
Net cash flow used for investing activities | fill in the blank 22 | |
Cash flows from financing activities: | ||
Cash received from net incomeCash received from sale of common stockCash received from sale of equipmentCash received from sale of inventoriesCash received from sale of investmentsCash received from retained earnings | $- Select - | |
Cash paid for dividendsCash paid for inventoriesCash paid for purchase of equipmentCash paid for purchase of investmentsCash paid for purchase of landCash paid for retained earnings | - Select - | |
Net cash flow from financing activities | fill in the blank 27 | |
Cash received from gain on sale of investmentsCash received from loss on sale of investmentsCash received from net incomeCash received from sale of common stockCash received from sale of investmentsChange in cash | $- Select - | |
Cash at the beginning of the year | fill in the blank 30 | |
Cash at the end of the year |
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