ACCT 212 Study Guide - Quiz Guide: Net Income
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Here is the information you will need to prepare a 2018statement of cash flows for J. OâBrien Real Estate for the yearended October 31, 2018.
The cash balance was $21,000 at the beginning of 2018
Cashincrease 79,000
Netincome 78,000
Depreciationexpense 15,000
Issuance of commonstock 28,000
Sale of plantassets 5,000
From loan repayment byborrower 12,000
Purchase of stockinvestment 22,000
Paid dividends tostockholders 45,000
Accounts receivabledecrease 12,000
Inventoryincrease 9,000
Accounts payabledecrease 3,000
Accrued liabilitiesincrease 8,000
J. OâBRIEN REAL ESTATE Statement of Cash Flows For Year Ended October 31, 2018 | ||
Net cash flow from operating activities | ||
Net Income | ||
Depreciation | ||
Accounts receivable decrease | ||
Inventory increase | ||
Accounts payable decrease | ||
Accrued liabilities increase | ||
Net cash provided by operating activities | ||
Cash flow from investing activities | ||
Sale of stock plant assets | ||
Loan repayment by borrower | ||
Purchase of stock investment | ||
Net cash used by investing activities | ||
Cash flow from financing activities | ||
Issuance of common stock | ||
Payment of dividends | ||
Net cash provided by financing activities | ||
Net increase in cash | ||
Cash at beginning of year | ||
Cash at end of year |
Statement of Cash Flows
The following is a list of the items to be included in thepreparation of Warrick Company's 2016 statement of cash flows:
Net income, $59,200
Payment for purchase of building, $98,000
Increase in accounts receivable, $7,400
Proceeds from issuance of common stock, $37,100
Increase in accounts payable, $4,500
Proceeds from sale of land, $7,000
Depreciation expense, $12,600
Payment of dividends, $36,000
Gain on sale of land, $5,300
Decrease in inventory, $3,700
Payment for purchase of long-term investments, $9,600
Amortization of discount on bonds payable, $1,900
Proceeds from issuance of note, $18,000
Increase in deferred taxes payable, $5,000
Equipment acquired by capital lease, $19,500
Decrease in salaries payable, $2,300
Beginning cash balance, $20,300
Required
1. Prepare the statement of cash flows.
WARRICK COMPANY | ||
Statement of Cash Flows | ||
For Year Ended December 31, 2016 | ||
Operating Activities: | ||
Net income | $ | |
Adjustment for noncash income items: | ||
Add: Depreciation expense | ||
Add: Amortization of discount on bonds payable | ||
Add: Accumulated depreciation | ||
Less: Gain on sale of land | ||
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: | ||
Payment for purchase of building | $ | |
Proceeds from sale of land | ||
Payment for purchase of long-term investments | ||
Net cash used for investing activities | ||
Financing Activities: | ||
Proceeds from issuance of common stock | $ | |
Payment of accounts payable | ||
Proceeds from issuance of note | ||
Net cash provided by financing activities | ||
Net Decrease in Cash | $ | |
Cash, January 1, 2016 | ||
Cash, December 31, 2016 | $ | |
Investing and Financing Activities Not Affecting Cash | ||
Investing Activities: | ||
Acquisition of equipment under capital lease | $ | |
Financing Activities: | ||
Incurrence of capital lease obligation for equipment |