Assignment:
Complete the missing areas of the Statement of Cash Flows for Ma and Pa Grocery as of December 31, 20XX.
Additional Information:
Depreciation for the year was 10,000.
Cash received from the sale of investments was 8000.
Cash paid for construction of the building was 42,000.
Cash paid for dividends was 4,000.
Cash at the beginning of the year was 7,800, and at the end of the year was 61,500.
Common stock issued to retire bonds payable was 10,000.
| Ma and Pa Grocery |
| Statement of Cash Flows-Indirect Method |
| For the Year Ended 20XX |
| Cash Flows from Operating Activities: |
|
|
|
| Net Income |
|
|
43,800 |
| Reconciliation of net income to net cash flows: |
|
|
|
| Depreciation |
|
|
|
| Patent Amortization |
|
2,400 |
|
| Changes in Current Assets and Current Liabilities: |
|
|
|
| Decrease in Accounts Receivable |
|
4,000 |
|
| Increase in Inventory |
|
-750 |
|
| Increase in Prepaid Expenses |
|
-430 |
|
| Decrease in Accounts Payable |
|
-1,200 |
|
| Increase in Accrued Liabilities |
|
380 |
|
| Decrease in Income Taxes Payable |
|
-500 |
|
| Net Cash Flows Provided by Operating Activities |
|
|
|
| Cash Flows from Investing Activities: |
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|
|
| Cash received from sale of: |
|
|
|
| Investments (long-term) |
|
|
|
| Land |
22,000 |
|
|
| Less: Cash Paid for construction on building |
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|
|
| Net Cash Flows Used In Investing Activities |
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|
|
| Cash Flows from Financing Activities: |
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|
|
| Cash received from issuing mortgage note payable |
|
12,000 |
|
| Less: Cash paid for dividends |
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|
|
| Net Cash Flows Used for Financing Activities |
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|
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| Increase in cash |
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|
|
| Cash at the Beginning of the Year |
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| Cash at the End of the Year |
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| Schedule of Non-Cash Investing and Financing Activities: |
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| Issued common stock to retire bonds payable |
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