Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheet of Pelican Joe Industries Inc. for December 31,2016 and 2015, is as follows: The following additional information is taken from the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The comparative balance sheet of Pelican Joe Industries Inc. for December 31,2016 and 2015, is as follows: The following additional information is taken from the records: 1. Land was sold for $130. 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 $324 credit to Retained Earnings for net income. 6. There was an $97 debit to Retained Earnings for cash dividends declared. A. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Reler to th 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 or to indicate a NET cash outfiow for the section. B. Was the net cash flow from operations for Pelican Joe industries inc. more or less than net income? What is the source of this difference? A. Prepare a statement of cash flows, using the indirect method of presenting cash flows trom eperating 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 outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section. \begin{tabular}{|l|l|} \hline & Changes in current operating assets and liabilities: \\ \hline 5 & \\ \hline 7 & \\ \hline 8 & \\ \hline 9 & \\ \hline 10 & \\ \hline 11 & Cash flows from investing activities: \\ \hline 12 & \\ \hline 13 & Cash flows from financing activities: \\ \hline 14 & \\ \hline 15 & \\ \hline \end{tabular} 15 Cash flows from financing activities: 16 17 18 19 20 Cash at the beginning of the year 21 Cash at the end of the year B. Was the net cash flow from operations for Pelican Joe industries inc. more or less than net income? What is the source of this difference? Net cash flow from operations was net income. The source(s) of the difference are: Check all that apply. Changes in current operating assets and liabilities Depreciation expense Gain on the sale of land Purchase of equipment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Prove Equation (5.22).

Answered: 1 week ago