USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING 3 QUESTIONS
Mellon Company |
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Balance Sheet |
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For the Years Ending December 31, 2017 and 2018 |
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(All figures in dollars) |
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2017 |
2018 |
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Cash |
1,400 |
1,820 |
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Accounts receivable |
7,520 |
6,870 |
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Inventory |
6,450 |
7,180 |
|
Total current assets |
15,370 |
15,870 |
|
Gross fixed assets |
102,860 |
108,960 |
|
(Accumulated depreciation) |
(14,980) |
(16,470) |
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Net fixed assets |
87,880 |
92,490 |
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Land |
12,560 |
14,860 |
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Total assets |
115,810 |
123,220 |
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Notes payable |
1,870 |
1,960 |
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Accounts payable |
820 |
960 |
|
Accruals |
480 |
380 |
|
Current portion of LT Debt |
6,850 |
8,020 |
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Total current liabilities |
10,020 |
11,320 |
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Long-term debt |
71,620 |
76,520 |
|
Common stock |
8,000 |
7,600 |
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Paid in capital |
21,480 |
20,960 |
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Retained earnings |
4,690 |
6,820 |
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Total liabilities and equity |
115,810 |
123,220 |
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Additional Data from 2018 Income Statement: |
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Sales in 2018 |
479,650 |
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Net income in 2018 |
12,760 |
25. Calculate the Cash flows from operating activities for 2018. 26. Calculate the Cash flows from investing activities for 2018. 27. Calculate the Cash flows from financing activities for 2018.
Solution
Cash flows from operating activities for 2018-= $14,210
Cash flows from investing activities for 2018-=$ (8,400).........Cash used
Cash flows from financing activities for 2018-=$ (5,390).........Cash used
Working
Mellon Company | ||
Statement of Cash Flows | ||
For the Year ended December 31 2018 | ||
A. Cash Flows from Operating Activity | ||
Net Income | $ 12,760.00 | |
Adjustments to reconcile net income to net cash flows from Operating Activities | ||
Depreciation expense | $ 1,490.00 | |
Changes In Current Operating Assets Liabilities | ||
Decrease in Accounts Receivable | $ 650.00 | |
Increase in Inventory | $ (730.00) | |
Increase in Accounts Payable | $ 140.00 | |
Decrease in accruals | $ (100.00) | |
$ 1,450.00 | ||
Net cash flow from Operating activities | $ 14,210.00 | |
B. Cash flows from Investing Activities | ||
Purchase of fixed asset | $ (6,100.00) | |
Purchase of Land | $ (2,300.00) | |
Net Cash Used in Investing activities | $ (8,400.00) | |
C. Cash Flows from Financing activities | ||
Cash received from long term debts | $ 6,070.00 | |
Cash received from notes payable | $ 90.00 | |
Purchase of treasury stock | $ (920.00) | |
Dividends Paid | $ (10,630.00) | |
Cash flows from Financing activities | $ (5,390.00) | |
Net Increase (Decrease) in Cash [A+B+C] | $ 420.00 | |
Cash at the beginning | $ 1,400.00 | |
Cash at the end | $ 1,820.00 |
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