Question
The comparative balance sheet of Pelican Joe Industries Inc. for December 31, 2016 and 2015, is as follows: 1 Dec. 31, 2016 Dec. 31, 2015
The comparative balance sheet of Pelican Joe Industries Inc. for December 31, 2016 and 2015, is as follows:
1 |
| Dec. 31, 2016 | Dec. 31, 2015 |
2 | Assets |
|
|
3 | Cash | $486.00 | $158.00 |
4 | Accounts receivable (net) | 280.00 | 195.00 |
5 | Inventories | 172.00 | 110.00 |
6 | Land | 400.00 | 453.00 |
7 | Equipment | 223.00 | 172.00 |
8 | Accumulated depreciation-equipment | (60.00) | (27.00) |
9 | Total assets | $1,501.00 | $1,061.00 |
10 | Liabilities and Stockholders Equity |
|
|
11 | Accounts payable (merchandise creditors) | $180.00 | $161.00 |
12 | Dividends payable | 32.00 |
|
13 | Common stock, $10 par | 105.00 | 45.00 |
14 | Paid-in capital: Excess of issue price over parcommon stock | 247.00 | 121.00 |
15 | Retained earnings | 937.00 | 734.00 |
16 | Total liabilities and stockholders equity | $1,501.00 | $1,061.00 |
The following additional information is taken from the records:
1. | Land was sold for $120. |
2. | Equipment was acquired for cash. |
3. | There were no disposals of equipment during the year. |
4. | The common stock was issued for cash. |
5. | There was a $299 credit to Retained Earnings for net income. |
6. | There was an $96 debit to Retained Earnings for cash dividends declared. |
Required:
A. | 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. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash out flow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section. |
Score: 90/154 Pelican Joe Industries Inc. Statement of Cash Flows For the Year Ended December 31, 2016 1Cash flows from operating activities: 2 Net income Adjustments to reconcile net income to net cash flow from operating activities: 4Depreciation 5 Gain on sale of land 6 Changes in current operating assets and liabilities: 7 Increase in accounts receivable 8 Increase in inventories 9 Increase in accounts payable 10 Net cash flow from operating activities 1 Cash flows from investing activities: 12 Cash received from sale of land 13 Less: Cash paid for purchase of equipment 14 Net cash flow from investing activities 15 Cash flows from financing activities: 16 Cash received from sale of common stock 17 Less cash paid for dividends 18Net cash flow from financing activities 19 Increase in cash 20 Cash at the beginning of the year 21 Cash at the end of the year
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