Question
Visual Inspection Gordon Company's accounting records provided the following changes in account balances and other information for 2019: Net Changes for 2019 Debit Credit Cash
Visual Inspection
Gordon Company's accounting records provided the following changes in account balances and other information for 2019:
Net Changes for 2019 | ||||
---|---|---|---|---|
Debit | Credit | |||
Cash | $1,200 | |||
Accounts Receivable | $1,500 | |||
Inventory | 1,600 | |||
Buildings and Equipment | 8,500 | |||
Accumulated Depreciation | 2,500 | |||
Accounts Payable | 1,000 | |||
Common Stock, no par | 5,200 | |||
Retained Earnings | 3,100 | |||
$12,300 | $12,300 |
Additional information: Net income totaled $6,000. Dividends were declared and paid. Equipment was purchased for $8,500. No buildings and equipment were sold during the year. One hundred shares of common stock were sold for $52 per share. The ending cash balance was $4,100.
Required:
Using visual inspection, prepare a 2019 statement of cash flows for Gordon. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.
GORDON COMPANY | ||
Statement of Cash Flows | ||
For Year Ended December 31, 2019 | ||
Operating Activities: | ||
Net income | $6,000 | |
Adjustment for noncash income items: | ||
Add: Depreciation expense | 2,500 | |
Adjustments for cash flow effects from working capital items: | ||
Decrease in accounts receivable | 1,500 | |
Increase in inventory | -1,600 | |
Decrease in accounts payable | -1,000 | |
Net cash provided by operating activities | $7,400 | |
Investing Activities: | ||
Payment for purchase of equipment | $-8,500 | |
Net cash used for investing activities | -8,500 | |
Financing Activities: | ||
Proceeds from issuance of common stock | $5,200 | |
Payment of dividends | __________ | |
Net cash provided by financing activities | __________ | |
Net increase in cash | __________ | |
Cash, January 1, 2019 | __________ | |
Cash, December 31, 2019 | __________ |
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