Question

A comparative balance sheet for Carla Vista Corporation is presented below.

		December 31
Assets		2020		2019
Cash		$80,240		$25,960
Accounts receivable		96,760		77,880
Inventory		200,600		223,020
Land		83,780		129,800
Equipment		330,400		236,000
Accumulated depreciation–equipment		(87,320)		(49,560)
Total		$704,460		$643,100
Liabilities and Stockholders’ Equity
Accounts payable		$40,120		$55,460
Bonds payable		177,000		236,000
Common stock ($1 par)		193,520		193,520
Retained earnings		293,820		158,120
Total		$704,460		$643,100

Additional information:

1.		Net income for 2020 was $182,900; there were no gains or losses.
2.		Cash dividends of $47,200 were declared and paid.
3.		Bonds payable of $59,000 were retired.

Compute each of the following: (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

1.		Net cash provided by operating activities		$
2.		Net cash provided (used) by investing activities		$
3.		Net cash provided (used) by financing activities		$

Answer 1

1.

Cash Flows from Operating Activities
Net Income	182900
Adjustments to reconcile net income to Net Cash flows from Operating Activities
Depreciation Expense	37760
Increase in Account receivable	-18880
Decrease in Accounts payable	-15340
Decrease in Inventory	22420
Net Cash flows from operating activities		208860

2.

Cash flows from Investing Activities
sale of land	46020
Purchase of Equipment	-94400
Net Cash flows from Investing Activities		-48380

3.

Cash flows from Financing Activities
Bonds payable retired	-59000
Payment of Dividend	-47200
Net cash flows from Financing Activities		-106200