Question

SARASOTA INC. BALANCE SHEETS Dec. 31, 2017 Jan. 1, 2017 Inc./Dec. Assets Cash $ 47,080 $...

SARASOTA INC.
BALANCE SHEETS

Dec. 31, 2017

Jan. 1, 2017

Inc./Dec.

Assets
Cash $ 47,080 $ 15,080 $32,000 Inc.
Accounts receivable 95,260 90,180 5,080 Inc.
Equipment 43,260 24,180 19,080 Inc.
Less: Accumulated Depreciation-Equipment 21,260 11,000 10,260 Inc.
    Total $164,340 $118,440
Liabilities and Stockholders’ Equity
Accounts payable $ 24,260 $ 17,180 7,080 Inc.
Common stock 102,080 82,180 19,900 Inc.
Retained earnings 38,000 19,080 18,920 Inc.
    Total $164,340 $118,440


Net income of $48,260 was reported, and dividends of $29,340 were paid in 2017. New equipment was purchased and none was sold.

Prepare a statement of cash flows for the year 2017.

Homework Answers

Answer #1

Statement of cashflow :

Cash flow from operating activities
Net income 48260
Adjustment to reconcile net income
Depreciation expense 10260
Increase account receivable (5080)
Increase account payable 7080
Net cash flow from operating activities 60520
Cash flow from investing activities
Purchase of equipment (19080)
Net cash flow from investing activities (19080)
Cashflow from financing activities
Issue common stock 19900
Dividend paid (29340)
Net cash flow from financing activities (9440)
Net cash flow 32000
Beginning cash 15080
Ending cash 47080
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