Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Cash Accounts receivable Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Debits > Credits > Credits by: Debits by: $121,206 170,500 $ 85,000 4,800 104,000 96,000 281,000 65,900 49,900 5,000 9, 100 403,000 123,000 75,000 $796,700 $796,700 The following additional information is available about last year's activities: a. Net income for the year was $_? b. The company sold equipment during the year for $35,100. The equipment originally cost $160,400 and it had $127.000 in accumulated depreciation at the time of sale. C Cash dividends of $10,300 were declared and paid during the year. d. The beginning and ending balances in the plant and Equipment and Accumulated Depreciation accounts are given below: Plant and equipment Accumulated depreciation Beginning ) Ending $2,915,000 $3,196,000 $ 979,200 $1,045, 100 e. The balance in the Cash account at the beginning of the year was $109,900; the balance at the end of the year was $__? f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. Required: Using the Indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.) Yoric Company Statement of Cash Flows Operating activities Net income Adjustments to convert net income to a cash basis: Depreciation Increase in accounts receivable Decrease in Inventory Increase in income taxes payablo Increase in accounts payable Decrease in accrued liabilities Gain on sale of equipment Decrease in prepaid expenses 0 0 Net cash provided by operating activities Investing activities: Proceeds from sale of equipment Additions to long-term investments Decrease in long-term loans to subsidiaries Additions to plant and ouipment 0 Net cash used in investing activities Financing activities: Issuance of bonds payable Repurchase of common stock Statement of Cash Flows Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Increase in accounts receivable Decrease in inventory Increase in income taxes payable Increase in accounts payable Decrease in accrued liabilities Gain on sale of equipment Decrease in prepaid expenses 0 0 Net cash provided by operating activities Investing activities: Proceeds from sale of equipment Additions to long-term investments Decrease in long-term loans to subsidiaries Additions to plant and equipment 0 Net cash used in investing activities Financing activities: Issuance of bonds payable Repurchase of common stock Cash dividends paid 0 Net cash provided by financing activities Net increase in cash Roninninn rach and nach antivalante 0
