Question

The comparative balance sheets of Champ Inc. at the beginning and the end of the year...

The comparative balance sheets of Champ Inc. at the beginning and the end of the year 2017 are as follows.

CHAMP INC.
BALANCE SHEETS

Dec. 31, 2017

Jan. 1, 2017

Inc./Dec.

Assets
Cash $ 45,330 $ 13,330 $32,000 Inc.
Accounts receivable 94,070 90,740 3,330 Inc.
Equipment 42,070 24,740 17,330 Inc.
Less: Accumulated Depreciation-Equipment 20,070 11,000 9,070 Inc.
    Total $161,400 $117,810
Liabilities and Stockholders’ Equity
Accounts payable $ 23,070 $ 17,740 5,330 Inc.
Common stock 100,330 82,740 17,590 Inc.
Retained earnings 38,000 17,330 20,670 Inc.
    Total $161,400 $117,810


Net income of $47,070 was reported, and dividends of $26,400 were paid in 2017. New equipment was purchased and none was sold.

Prepare a statement of cash flows for the year 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Homework Answers

Answer #1

Prepare statement of cash flow

Cash flow from operating activities
Net ncoome 47070
Adjustment to reconcile net income
Depreciation expense 9070
Increase account receivable -3330
Increase account payable 5330
Net cash flow from operating activities 58140
Cash flow from investing activities
Equipment purchase -17330
Net cash flow from investing activities -17330
Cash flow from financing activities
Issue common Stock 17590
Dividend paid -26400
Net cash flow from financing activities -8810
Net cash flow 32000
Beginning cash 13330
ENding cash 45330
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