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The following financial statements are available for Kim, Inc. on December 31, 2017. Question 2: Statements of Cash Flows and Accounts Receivables (36 points The
The following financial statements are available for Kim, Inc. on December 31, 2017.
Question 2: Statements of Cash Flows and Accounts Receivables (36 points The following financial statements are available for Kim, Inc. on December 31, 2017 Cash Accounts Receivable, Net Inventories Short-term investments Current Assets Kim, Inc. Comparative Balance Sheets 2017 $30,000 $65,000 $75,500 $13,500 $184,000 2016 $37,500 $53,500 $83,125 $25,000 $199,125 Property Plant and Equipment Accumulated Depreciation Long-term Investments $245,000 ($82,500) $30,000 $138,750 ($80,000) $2,500 Total Assets $376,500 $260,375 mand Accounts Payable Taxes Payable Interest Payable Unearned Revenue Total Current Liabilities $58,125 $10,000 $11,500 $27,500 $107,125 $73,750 $9,125 $3,750 $20,000 $106,625 $102,500 $50,000 Long-term Debt $209,625 $156,625 Total Liabilities Common Stock Additional Paid in Capital Retained Earnings $10,625 $131,250 $25,000 $5,000 $80,000 $18,750 Total Stockholders' Equity Total Liabilities and Stk. Equity $166,875 $376,500 $103,750 $260,375 Question 2, continued Kim, Ine. Income Statement For year ended December 31, 2017 Sales Revenue Cost of Sales Selling General and Administrative Expenses Income from operations NE $350,000 $175,000 $106,250 $68,750 S Interest Expense Dividends received from investment Loss on Sale of PP&E Gain on Sale of Securities Pretax Income $8,000 $3,125 $13,500 $6,000 $56,375 H ommand Tax Expense Net Income $22,500 $33,875 Additional Information: 1. The firm sold marketable securities with a book value of $11,500 for cash, recognizing a gain on the sale. 2. The firm purchased land for $125,000 cash and $8,125 of common stock. 3. The firm sold equipment for $11,500, recognizing a loss on the sale. 4. The firm signed a $62,500 note payable during 2017. 5. The firm purchased a long-term investment for $27,500. 6. The firm paid off a note payable that came due during 2017, with no penalties. 7. The firm issued additional shares of common stock for cash. Requirement: Prepare the Statement of Cash Flows for Kim, Inc. for the year ended Dec. 31, 2017 using the Indirect Method to calculate cash flows from operations. Use the template provided on the following page for your answer and be sure to include any necessary supplemental disclosures, including cash paid for interest and cash paid for taxes. gos Question 2, continued Cash from Operating Activities: (Prepare using the INDIRECT method) Question 2: State The following f Cash Accounts Inventori Short-te Currer Total Cash from Operations and Prog Acc Le Cash from Investing Activities: Total Cash from Investing Activities Cash from Financing Activities: Total Cash from Financing Activities Net Change in CashStep by Step Solution
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