Question
The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $
The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $ 210,950 $ 197,570 Accounts receivable (net) 76,780 70,440 Inventories 216,410 208,090 Investments 0 80,970 Land 110,930 0 Equipment 236,510 186,230 Accumulated depreciation-equipment (56,200) (50,200) Total assets $795,380 $693,100 Liabilities and Stockholders' Equity Accounts payable $ 143,370 $ 136,540 Accrued expenses payable 14,420 18,020 Dividends payable 7,800 6,200 Common stock, $1 par 42,400 32,580 Paid-in capital: Excess of issue price over par-common stock 161,200 94,260 Retained earnings 426,190 405,500 Total liabilities and stockholders equity $795,380 $693,100 The income statement for the year ended December 31, 20Y3, is as follows: Sales $1,361,110 Cost of merchandise sold 837,080 Gross profit $ 524,030 Operating expenses: Depreciation expense $ 6,000 Other operating expenses 443,720 Total operating expenses 449,720 Operating income $ 74,310 Other income: Gain on sale of investments 13,500 Income before income tax $ 87,810 Income tax expense 35,120 Net income $ 52,690 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: The investments were sold for $94,470 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 $32,000 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
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