Question
The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows: 1 Dec. 31, 20Y3 Dec. 31, 20Y2 2
The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
1 |
| Dec. 31, 20Y3 | Dec. 31, 20Y2 |
2 | Assets |
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3 | Cash | $155,000.00 | $150,000.00 |
4 | Accounts receivable (net) | 450,000.00 | 400,000.00 |
5 | Inventories | 770,000.00 | 750,000.00 |
6 | Investments | 0.00 | 100,000.00 |
7 | Land | 500,000.00 | 0.00 |
8 | Equipment | 1,400,000.00 | 1,200,000.00 |
9 | Accumulated depreciation-equipment | (600,000.00) | (500,000.00) |
10 | Total assets | $2,675,000.00 | $2,100,000.00 |
11 | Liabilities and Stockholders Equity |
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12 | Accounts payable | $340,000.00 | $300,000.00 |
13 | Accrued expenses payable | 45,000.00 | 50,000.00 |
14 | Dividends payable | 30,000.00 | 25,000.00 |
15 | Common stock, $4 par | 700,000.00 | 600,000.00 |
16 | Paid-in capital: Excess of issue price over parcommon stock | 200,000.00 | 175,000.00 |
17 | Retained earnings | 1,360,000.00 | 950,000.00 |
18 | Total liabilities and stockholders equity | $2,675,000.00 | $2,100,000.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
A. | The investments were sold for $175,000 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 $500,000 credit to Retained Earnings for net income. |
F. | There was a $90,000 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 outflows, decreases in cash and a net cash outflow for each section, if required.
Labels and Amount Descriptions
Labels and Amount Descriptions | |
Cash used for dividends | |
Cash paid for merchandise | |
Cash used for purchase of equipment | |
Cash used for purchase of land | |
Cash received from customers | |
Cash from sale of common stock | |
Cash from sale of investments | |
December 31, 20Y3 | |
Decrease in accounts payable | |
Decrease in accounts receivable | |
Decrease in accrued expenses payable | |
Decrease in inventories | |
Decrease in cash | |
Depreciation | |
For the Year Ended December 31, 20Y3 | |
Gain on sale of investments | |
Increase in accounts payable | |
Increase in accounts receivable | |
Increase in accrued expenses payable | |
Increase in cash | |
Increase in inventories | |
Loss on sale of investments | |
Net cash flow from operating activities | |
Net cash flow used for operating activities | |
Net cash flow from investing activities | |
Net cash flow used for investing activities | |
Net cash flow from financing activities | |
Net cash flow used for financing activities | |
Net income |
Statement of Cash Flows
Shaded cells have feedback.
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 outflows, decreases in cash and a net cash outflow for each section, if required.
Score: 103/174
Navaria Inc. |
Statement of Cash Flows |
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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 (used for) investing activities: |
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19 | Cash flows from (used for) 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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Points:
20.72 / 35
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