The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 1 2 Assets 3 Cash $155,000.00 $150,000.00 450,000.00 400,000.00 4 Accounts receivable (net) 5 Inventories 770,000.00 750,000.00 6 Investments 0.00 100,000.00 7 Land 500,000.00 0.00 1,400,000.00 1,200,000.00 8 Equipment 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 $340,000.00 $300,000.00 45,000.00 50,000.00 30,000.00 25,000.00 12 Accounts payable 13 Accrued expenses payable 14 Dividends payable 15 Common stock, 54 par 16 Paid-in capital: Excess of issue price over par-common stock 17 Retained earnings Total liabilities and stockholders'equity 700,000.00 600,000.00 200,000.00 175,000.00 950,000.00 1,360,000.00 18 $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 $600,000 credit to Retained Earnings for net income F. There was a $90,000 dobit to Retained Earnings for cash dividends declared. Prepare a statement of cash Nows, using the Indirect method of presenting cash Mows from operating activities Refer to the Labels and Amount Descriptions is 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 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 Catement of Cash Flows Navaria Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 1 Cash flows from operating activities: 2 Net income $500,000.00 3 Adjustments to reconcile net income to net cash flow from operating activities: 4 5 6 Changes in current operating assets and liabilities: 7 8 9 10 11 12 13 Cash flows from (used for) investing activities: 15 Statement of Cash Flows 13 Cash flows from (used for) investing activities: 14 15 16 17 18 19 Cash flows from (used for) financing activities: 20 21 22 23 24 Cash at the beginning of the year 25 Cash at the end of the year
