Question
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 2 Assets
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
| Dec. 31, 20Y3 | Dec. 31, 20Y2 | |
2 | Assets |
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3 | Cash | $625,080.00 | $586,430.00 |
4 | Accounts receivable (net) | 228,260.00 | 209,470.00 |
5 | Inventories | 641,070.00 | 616,400.00 |
6 | Investments | 0.00 | 240,170.00 |
7 | Land | 327,640.00 | 0.00 |
8 | Equipment | 705,000.00 | 552,830.00 |
9 | Accumulated depreciation-equipment | (165,670.00) | (148,610.00) |
10 | Total assets | $2,361,380.00 | $2,056,690.00 |
11 | Liabilities and Stockholders Equity |
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12 | Accounts payable (merchandise creditors) | $425,090.00 | $405,900.00 |
13 | Accrued expenses payable (operating expenses) | 43,140.00 | 52,460.00 |
14 | Dividends payable | 23,780.00 | 19,970.00 |
15 | Common stock, $4 par | 147,000.00 | 96,000.00 |
16 | Paid-in capital: Excess of issue price over parcommon stock | 417,200.00 | 279,600.00 |
17 | Retained earnings | 1,305,170.00 | 1,202,760.00 |
18 | Total liabilities and stockholders equity | $2,361,380.00 | $2,056,690.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
A. | The investments were sold for $280,150 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 $197,450 credit to Retained Earnings for net income. |
F. | There was a $95,040 debit to Retained Earnings for cash dividends declared. |
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Livers Inc. |
Statement of Cash Flows |
1 | Cash flows from operating activities: |
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3 | Adjustments to reconcile net income to net cash flow from operating activities: |
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6 | Changes in current operating assets and liabilities: |
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13 | Cash flows from investing activities: |
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19 | Cash flows from financing activities: |
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24 | Cash at the beginning of the year |
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25 | Cash at the end of the year |
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