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SessionLocator assignment-take8 false Statement of cash flows indirect method Statement of Cash Flows Dec. 31, 2016 Dec. 31, 2015 Assets 5·Cash 4 Accounts receivable (net) s Merchandise inventory 146,59000$180,310.00 2392000242.510.00 298.480.00 9,720.00 536,710.00 170680.00· (132 ai009) 1.189.200.00 $1134,92000 | Prepaid expenses 7 Equipment 322020.002 12,71000 654.640.00 Total assets 10: Liabilifies and Stoobeiders Equity Accourts ayabie kmerchandise creditors Mortgage note payabke 249.470.00$238,340.00 0.00 335.820.00 Paidhin capitial:Excess of issre price over gar-common szoc Retained earrings 73 000003.0000 50000.00530006 1673000 227 41000 6Total abiuties andst Additional data obtained from the income statemenk and from an examination of the accounts in the ledger for 2016 are as foll A. Net income $343 310 B. Depreciation reported on the income statement. $83 570 C. Equipment was purchased at a cost of $163 630 and fully deprediated equipment costing $45,700 was di scarded, with n Check My Work1 1 more Check My Work uces tema.ning All work saved
Expert Answer
| Cash flow statement (indirect) | |
| Net Income | 343310 |
| Add: depreciation | 83570 |
| 426880 | |
| Cash flow from operating Activities | |
| Add: increase in current liabilities and decrease in Current assets | |
| increase in Accounts payable | 10930 |
| Decrease in Accounts receivable | 18590 |
| Less: Decrease in current liabiltities and increase in Current Assets | |
| Paid Mortgage Loan | -335820 |
| increase in Inventory | -23540 |
| increase Prepaid Expenses | -2940 |
| Total Cash flow from operating Activities | 94100 |
| Cash flow from investing Activities | |
| Purchase of Equipment | -163630 |
| Cash flow from financing Activities | |
| Issue of Shares | 190000 |
| Cash dividend paid | -154190 |
| Cash flow from financing Activities | 35810 |
| Changes in cash flow during the year | -33720 |
| Beginning Cash balance | 180310 |
| Ending cash Balance | 146590 |
| Cash flow statement (indirect) | |
| Net Income | 343310 |
| Add: depreciation | 83570 |
| =B4+B5 | |
| Cash flow from operating Activities | |
| Add: increase in current liabilities and decrease in Current assets | |
| increase in Accounts payable | =249470-238540 |
| Decrease in Accounts receivable | =242510-223920 |
| Less: Decrease in current liabiltities and increase in Current Assets | |
| Paid Mortgage Loan | -335820 |
| increase in Inventory | =298480-322020 |
| increase Prepaid Expenses | =9770-12710 |
| Total Cash flow from operating Activities | =B6+SUM(B9:B14) |
| Cash flow from investing Activities | |
| Purchase of Equipment | -163630 |
| Cash flow from financing Activities | |
| Issue of Shares | =10000*19 |
| Cash dividend paid | -154190 |
| Cash flow from financing Activities | =SUM(B19:B20) |
| Changes in cash flow during the year | =B15+B17+B21 |
| Beginning Cash balance | 180310 |
| Ending cash Balance | =B22+B23 |
