The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form:
Year 2 Year 1
Assets Cash $45,000 $53,500
Accounts receivable (net) 51,300 58,000
Inventories 147,200 135,000
Investments 0 60,000
Equipment 493,000 375,000
Accumulated depreciation—equipment (113,700) (128,000)
Total Assets $622,800 $553,500
Liabilities and Stockholders' Equity Accounts payable $61,500 $42,600
Bonds payable, due Year 4 0 100,000
Common stock, $10 par 250,000 200,000
Paid-in capital in excess of par—common stock 75,000 50,000
Retained earnings 236,300 160,900
Total liabilities and stockholders' equity $622,800 $553,500
The income statement for the current year is as follows:
Sales $629,700
Cost of goods sold 341,800
Gross profit $287,900
Operating expenses: Depreciation expense $24,700 Other operating expenses 75,300 Total operating expenses 100,000
Income from operations $187,900
Other income: Gain on sale of investment $5,000 Other expense: Interest expense 12,000 (7,000)
Income before income tax $180,900
Income tax 64,100
Net income $116,800
Additional data for the current year are as follows:
a.Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000.
b.Bonds payable for $100,000 were retired by payment at their face amount.
c.5,000 shares of common stock were issued at $15 for cash.
d.Cash dividends declared were paid $41,400.
e.All sales are on account.
Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
ConnieJo Company
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flows from operating activities: Cash paid for dividendsCash paid for purchase of equipmentCash paid to retire bonds payableCash received from customersCash received from sale of investments
$- Select - Cash from sale of investmentsCash paid for dividendsCash paid for purchase of equipmentCash paid to retire bonds payableCash payments for merchandise
- Select - Cash from sale of investmentsCash paid for dividendsCash paid for purchase of equipmentCash paid to retire bonds payableCash payments for operating expenses
- Select - Cash paid for dividendsCash paid for purchase of equipmentCash paid to retire bonds payableCash payments for interestCash received from sale of investments
- Select - Cash paid for dividendsCash paid for purchase of equipmentCash paid to retire bonds payableCash payments for income taxesCash received from sale of investments
- Select - Net cash flow from operating activities _____
Cash flows from investing activities: Cash payments for income taxesCash payments for interestCash payments for merchandiseCash payments for operating expensesCash received from sale of investments
$- Select - Cash paid for purchase of equipmentCash payments for income taxesCash payments for interestCash payments for merchandiseCash payments for operating expenses
- Select - Net cash flow used for investing activities _____
Cash flows from financing activities: Cash payments for income taxesCash payments for merchandiseCash payments for operating expensesCash received from customersCash received from sale of common stock
$- Select - Cash paid for dividendsCash payments for income taxesCash payments for merchandiseCash payments for operating expensesCash received from customers
- Select - Cash paid to retire bonds payableCash payments for income taxesCash payments for interestCash payments for merchandiseCash payments for operating expenses
- Select - Net cash flow used for financing activities _____
Cash payments for interestCash payments for merchandiseChange in cashDepreciation expenseGain on sale of investment
$- Select -
Cash at the beginning of the year ______
Cash at the end of the year _____