Visual Inspection Noble Company's accounting records provided the following changes in account balances and other information for 2016 Net Changes for 2016 Debit Credit Cash $2,000 Accounts Receivable $1,900 Inventory 2,400 Land 1,700 Buildings and Equipment 23,000 Accumulated Depreciation 4,500 Accounts Payable 1,600 Salaries Payable 600 Bonds Payable 5,000 Common Stock, no par 3,000 Retained Earnings 5,300 $25,500 $25,500 Additional information Net income was $9,900 Dividends were declared and paid Land was sold for $1,700 No land was purchased A building was purchased for $23,000 No buildings and equipment were sold Bonds payable were issued at the end of the year Two hundred shares of stock were issued for $15 per share The beginning cash balance was $4,800 Required Using visual inspection, prepare a 2016 statement of cash flows for Noble Use a minus sign to indicate cash outflows, a decrease in cash or cash payments NOBLE COMPANY Statement of Cash Flows For Year Ended December 31, 2016 Operating Activities Net income $ Adjustment for noncash income items Add Depreciation expense Adjustments for cash flow effects from working capital items Increase in accounts receivable Decrease in inventory Increase in accounts payable Decrease in salaries payable Net cash provided by operating activities $ Investing Activities Proceeds from sale of land $ Payment for purchase of building Net cash used for investing activities Financing Activities Proceeds from issuance of bonds $ Proceeds from issuance of common stock Payment of dividends Net cash provided by financing activities Net decrease in cash $ Cash, January 1, 2016 Cash, December 31, 2016 $ Feedback Under the visual inspection method, you review the companys financial statements and prepare its statement of cash flows without using a spreadsheet This method may be used when a companys financial statements are simple and when the relationships between changes in account balances can be easily analyzed Check My Work

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Visual Inspection Noble Company's accounting records provided the following changes in account balances and other information for 2016: Net Changes for 2016 Debit Credit Cash

Visual Inspection

Noble Company's accounting records provided the following changes in account balances and other information for 2016:

	Net Changes for 2016

	Debit	Credit

Cash		$2,000
Accounts Receivable	$1,900
Inventory		2,400
Land		1,700
Buildings and Equipment	23,000
Accumulated Depreciation		4,500
Accounts Payable		1,600
Salaries Payable	600
Bonds Payable		5,000
Common Stock, no par		3,000
Retained Earnings		5,300
	$25,500	$25,500

Additional information: Net income was $9,900. Dividends were declared and paid. Land was sold for $1,700. No land was purchased. A building was purchased for $23,000. No buildings and equipment were sold. Bonds payable were issued at the end of the year. Two hundred shares of stock were issued for $15 per share. The beginning cash balance was $4,800.

Required:

Using visual inspection, prepare a 2016 statement of cash flows for Noble. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.

NOBLE COMPANY
Statement of Cash Flows
For Year Ended December 31, 2016
Operating Activities:
Net income	$
Adjustment for noncash income items:
Add: Depreciation expense
Adjustments for cash flow effects from working capital items:
Increase in accounts receivable
Decrease in inventory
Increase in accounts payable
Decrease in salaries payable
Net cash provided by operating activities		$
Investing Activities:
Proceeds from sale of land	$
Payment for purchase of building
Net cash used for investing activities
Financing Activities:
Proceeds from issuance of bonds	$
Proceeds from issuance of common stock
Payment of dividends
Net cash provided by financing activities
Net decrease in cash		$
Cash, January 1, 2016
Cash, December 31, 2016		$

Feedback

Under the visual inspection method, you review the companys financial statements and prepare its statement of cash flows without using a spreadsheet. This method may be used when a companys financial statements are simple and when the relationships between changes in account balances can be easily analyzed.

Check My Work