The comparative balance sheet of Cromme Inc. for December 31,2016 and 2015, is shown as follows:
Question not attempted.
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$626,640.00
$585,760.00
4
Accounts receivable (net)
226,900.00
208,390.00
5
Inventories
641,350.00
616,130.00
6
Investments
0.00
239,300.00
7
Land
328,730.00
0.00
8
Equipment
705,940.00
553,530.00
9
Accumulated depreciation-equipment
(166,970.00)
(148,000.00)
10
Total assets
$2,362,590.00
$2,055,110.00
11
Liabilities and Stockholdersâ Equity
12
Accounts payable (merchandise creditors)
$425,140.00
$404,540.00
13
Accrued expenses payable (operating expenses)
42,020.00
52,750.00
14
Dividends payable
23,580.00
19,500.00
15
Common stock, $4 par
154,000.00
100,000.00
16
Paid-in capital: Excess of issue price over parâcommon stock
416,600.00
279,400.00
17
Retained earnings
1,301,250.00
1,198,920.00
18
Total liabilities and stockholdersâ equity
$2,362,590.00
$2,055,110.00
Additional data obtained from an examination of the accounts inthe ledger for 2016 are as follows:
A. The investments were sold for $279,880 cash. B. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. D. The common stock was issued for cash. E. There was a $198,010 credit to Retained Earnings for netincome. F. There was a $95,680 debit to Retained Earnings for cashdividends declared.
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities
The section of the statement of cash flows that reports the cashtransactions affecting the determination of net income.
. Refer to the Labels and Amount Descriptions list provided forthe exact wording of the answer choices for text entries. Be sureto complete the heading of the statement. In the operatingactivities section, use the minus sign to indicate cash outflows,decreases in cash and a net cash outflow, if required. In theinvesting and financing activities section, use a minus sign onlyto indicate a NET cash outflow for the section.
LabelsIn CengageNOW, a Label is a text entry that does not have anamount associated with it.
and Amount DescriptionsIn CengageNOW, an Amount Description is a text entry other thanan Account that has an amount associated with it.
Cash paid for dividends Cash paid for merchandise Cash paid for purchase of equipment Cash paid for purchase of land Cash received from customers Cash received from sale of common stock Cash received from sale of investments December 31, 2016 Decrease in accounts payable Decrease in accounts receivable Decrease in accrued expenses payable Decrease in inventories Decrease in cash Depreciation For the Year Ended December 31, 2016 Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in accrued expenses payable Increase in cash Increase in inventories Loss on sale of investments Net cash flow from operating activities Net cash flow used for operating activities Net cash flow from investing activities Net cash flow used for investing activities Net cash flow from financing activities Net cash flow used for financing activities Net income
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities
The section of the statement of cash flows that reports the cashtransactions affecting the determination of net income.
. Refer to the Labels and Amount Descriptions list provided forthe exact wording of the answer choices for text entries. Be sureto complete the heading of the statement. In the operatingactivities section, use the minus sign to indicate cash outflows,decreases in cash and a net cash outflow, if required. In theinvesting and financing activities section, use a minus sign onlyto indicate a NET cash outflow for the section.
Question not attempted.
Cromme Inc.
Statement of Cash Flows
1
Cash flows from operating activities:
2
3
Adjustments to reconcile net income to net cash flow fromoperating activities:
4
5
6
Changes in current operating assets and liabilities:
7
8
9
10
11
12
13
Cash flows from investing activities:
14
15
16
17
18
19
Cash flows from financing activities:
20
21
22
23
24
Cash at the beginning of the year
25
Cash at the end of the year
The comparative balance sheet of Cromme Inc. for December 31,2016 and 2015, is shown as follows:
Question not attempted.
1 | Dec. 31, 2016 | Dec. 31, 2015 | |
2 | Assets | ||
3 | Cash | $626,640.00 | $585,760.00 |
4 | Accounts receivable (net) | 226,900.00 | 208,390.00 |
5 | Inventories | 641,350.00 | 616,130.00 |
6 | Investments | 0.00 | 239,300.00 |
7 | Land | 328,730.00 | 0.00 |
8 | Equipment | 705,940.00 | 553,530.00 |
9 | Accumulated depreciation-equipment | (166,970.00) | (148,000.00) |
10 | Total assets | $2,362,590.00 | $2,055,110.00 |
11 | Liabilities and Stockholdersâ Equity | ||
12 | Accounts payable (merchandise creditors) | $425,140.00 | $404,540.00 |
13 | Accrued expenses payable (operating expenses) | 42,020.00 | 52,750.00 |
14 | Dividends payable | 23,580.00 | 19,500.00 |
15 | Common stock, $4 par | 154,000.00 | 100,000.00 |
16 | Paid-in capital: Excess of issue price over parâcommon stock | 416,600.00 | 279,400.00 |
17 | Retained earnings | 1,301,250.00 | 1,198,920.00 |
18 | Total liabilities and stockholdersâ equity | $2,362,590.00 | $2,055,110.00 |
Additional data obtained from an examination of the accounts inthe ledger for 2016 are as follows:
A. | The investments were sold for $279,880 cash. |
B. | Equipment and land were acquired for cash. |
C. | There were no disposals of equipment during the year. |
D. | The common stock was issued for cash. |
E. | There was a $198,010 credit to Retained Earnings for netincome. |
F. | There was a $95,680 debit to Retained Earnings for cashdividends declared. |
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities
The section of the statement of cash flows that reports the cashtransactions affecting the determination of net income.
. Refer to the Labels and Amount Descriptions list provided forthe exact wording of the answer choices for text entries. Be sureto complete the heading of the statement. In the operatingactivities section, use the minus sign to indicate cash outflows,decreases in cash and a net cash outflow, if required. In theinvesting and financing activities section, use a minus sign onlyto indicate a NET cash outflow for the section.
Labels In CengageNOW, a Label is a text entry that does not have anamount associated with it. and Amount DescriptionsIn CengageNOW, an Amount Description is a text entry other thanan Account that has an amount associated with it. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Cash paid for dividends | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for merchandise | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for purchase of equipment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for purchase of land | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash received from customers | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash received from sale of common stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash received from sale of investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in accounts payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in accounts receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in accrued expenses payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in inventories | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in cash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in accounts payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in accounts receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in accrued expenses payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in cash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in inventories | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on sale of investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow from operating activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow used for operating activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow from investing activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow used for investing activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow from financing activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow used for financing activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities The section of the statement of cash flows that reports the cashtransactions affecting the determination of net income. . Refer to the Labels and Amount Descriptions list provided forthe exact wording of the answer choices for text entries. Be sureto complete the heading of the statement. In the operatingactivities section, use the minus sign to indicate cash outflows,decreases in cash and a net cash outflow, if required. In theinvesting and financing activities section, use a minus sign onlyto indicate a NET cash outflow for the section. Question not attempted.
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