The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31,20Y3 Dec. 31,20Y2 1 Assets $625,820.00 $586,050.00 Cash Accounts receivable (net) 227,530.00 209,880.00 4 Inventories 641,480.00 616.920.00 Investments 0.00 240,910.00 7 Land 327,510.00 0.00 8 Equipment 554,110.00 704,830.00 Accumulated depreciation-equipment (165,750.00) (148,570.00) $2,361,420.00 $2,059,300.00 Total assets 10 Liabilities and Stockholders' Equity 11 $424,970.00 $405,330.00 12 Accounts payable (merchandise creditors) 13 Accrued expenses payable (operating expenses) 42,810.00 51,640.00 14 Dividends payable 23,200.00 19,840.00 15 Common stock, $4 par 98,000.00 158,000.00 Liabilities and Stockholders' Equity 11 12 Accounts payable (merchandise creditors) $424,970.00 $405,330.00 Accrued expenses payable (operating expenses) 42,810.00 51,640.00 13 14 Dividends payable 23,200.00 19,840.00 Common stock, $4 par 158,000.00 98,000.00 15 Paid-in capital: Excess of issue price over par-common stock 417,900.00 280,700.00 16 17 Retained earnings 1,203,790.00 1,294,540.00 Total liabilities and stockholders' equity $2,361,420.00 $2,059,300.00 18 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: A. The investments were sold for $280,020 cash. B. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. D. The common stock was issued for cash. E. There was a $186,520 credit to Retained Earnings for net income. F. There was a $95,770 debit to Retained Earnings for cash dividends declared Score: 121/173 Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities: 1 $5,350,750.00 Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation (3,310,580.00) 4 Gain on sale of investments 5 Changes in current operating assets and liabilities: 6 Increase in accounts receivable 7 Increase in inventories (3,310,580.00) 8 Increase in accounts payable (1,763,282.00) 9 Decrease in accrued expenses payable (133,998.00) 10 $142,890.00 Net cash flow from operating activities 11 12 13 Cash flows from investing activities: $280,020.00 Cash received from sale of investments 14 $(327,510.00) Cash paid for purchase of land 15 $142,890.00 Net cash flow from operating activities 11 12 13 Cash flows from investing activities: $280,020.00 Cash received from sale of investments 14 $(327,510.00) Cash paid for purchase of land 15 Cash paid for purchase of equipment 16 Net cash flow used for investing activities (198,210.00) 17 18 19 Cash flows from financing activities: $187,500.00 Cash received from sale of common stock 20 Cash paid for dividends (92,410.00) 21 95,090.00 Net cash flow from financing activities 22 23 Change in cash 24 Cash at the beginning of the year 586,050.00 25 Cash at the end of the year
