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Use the following excerpts from Zowleski Companys financial information. Dec. 31, 2018 Dec. 31, 2017 Cash $102,800 $95,000 Accounts Receivable 21,800 22,700 Merchandise Inventory 140,000
Use the following excerpts from Zowleski Companys financial information.
Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash | $102,800 | $95,000 | |
Accounts Receivable | 21,800 | 22,700 | |
Merchandise Inventory | 140,000 | 131,000 | |
Plant Assets | 190,000 | 155,000 | |
Accumulated Depreciation | (25,000) | (21,000) | |
Total Assets | $429,600 | $382,700 | |
Accounts Payable | $19,000 | $21,000 | |
Notes Payable | 140,500 | 120,000 | |
Common Stock | 20,000 | 20,000 | |
Retained Earnings | 250,100 | 221,700 | |
Total Liabilities and Equity | $429,600 | $382,700 | |
Additional Information: | |||
Net Income for 2018 | $28,400 | ||
Depreciation Expense for 2018 (Accumulated Depreciation Increase) | 4,000 | ||
Plant Assets Purchased (Plant Assets Increase), Finance by Note | 35,000 | ||
Notes Payable Increased by Amount of Plant Assets Purchase | 35,000 | ||
Notes Payable Decreased by Amount of Principal Note Payments | 14,500
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28,400 4,000 900 Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2018 Cash Flow from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Flow from Operating Activities: Depreciation Expense Accounts Receivable Change Merchandise Inventory Change -9,000 Accounts Payable Change -2,000 Net Cash Flow from Operating Activities Cash Flow from Financing Activities: Payment of Notes Payable (principal) 14,500 x Net Cash Flow from Financing Activities Total Cash Flow Increase Cash Balance, December 31, 2017 -6,100 22,300 14,500 x $ 14,500 x 95,000 Cash Balance, December 2018 102,800 Noncash Investing and Financing Activities: Plant Assets Acquired in Exchange for Notes Payable 7,800 X
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