Question

The following information is related to New Lane Company's fiscal year 2017.             Income Statement:               &n

The following information is related to New Lane Company's fiscal year 2017.

            Income Statement:

                        Net Income                             $300,000

                        Depreciation Expense                30,000

                        Loss on Sale of Plant Assets     10,000

                        Interest Expense                             500

            Balance Sheet - 12/31/17:

                        Accounts Payable Increase         4,000

                Accounts Receivable Increase    5,000

                        Plant Assets - Purchased         200,000

                        Plant Assets – Proceeds

from sale          100,000

                       

            Additional Information:

                        Cash Balance - 12/31/2016:  $50,000

Common Stock exchanged for outstanding Long-Term Notes Payable of $150,000

                        Dividends paid were $30,000

Use this information to prepare the Statement of Cash Flows for New Lane's Company using the indirect method.

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Answer #1

prepare the Statement of Cash Flows for New Lane's Company using the indirect method.

Cash flow from operating activities
Net income 300000
Adjustment to reconcile net income
Depreciation expense 30000
Loss on sale of plant assets 10000
Account payable increase 4000
Account receivable increase -5000
Net cash flow from operating activities 339000
Cash flow from investing activities
Plant assets purchased -200000
Plant assets sold 100000
Net cash flow from investing activities -100000
Cash flow from financing activities
Dividend paid -30000
Net cash flow from financing activities -30000
Net cash flow 209000
Beginning cash 50000
Ending cash 259000
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