Question

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York Company engaged in the following transactions for the year 2016. The beginning cash balance was $28,400 and the ending cash balance was $69,102.

  

1.	Sales on account were $282,900. The beginning receivables balance was $94,200 and the ending cash balance was $76,700.
2.	Salaries expense for the period was $55,540. The beginning salaries payable balance was $3,798 and the ending balance was $2,170.
3.	Other operating expenses for the period were $122,750. The beginning other operating expenses payable balance was $4,130 and the ending balance was $7,802.
4.	Recorded $19,300 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $13,950 and $33,250, respectively.
5.	The Equipment account had beginning and ending balances of $213,940 and $248,140 respectively. There were no sales of equipment during the period.
6.	The beginning and ending balances in the Notes Payable account were $52,400 and $154,900, respectively. There were no payoffs of notes during the period.
7.	There was $5,779 of interest expense reported on the income statement. The beginning and ending balances in the Interest Payable account were $1,505 and $1,003, respectively.
8.	The beginning and ending Merchandise Inventory account balances were $89,890 and $107,868, respectively. The company sold merchandise with a cost of $153,141 (cost of goods sold for the period was $153,141). The beginning and ending balances in the Accounts Payable account were $9,390 and $11,362, respectively.
9.	The beginning and ending balances in the Notes Receivable account were $5,100 and $10,200, respectively. Notes receivable result from long-term loans made to employees. There were no collections from employees during the period.
10.	The beginning and ending balances in the Common Stock account were $100,000 and $122,000, respectively. The increase was caused by the issue of common stock for cash.
11.	Land had beginning and ending balances of $53,200 and $40,566, respectively. Land that cost $12,634 was sold for $9,320, resulting in a loss of $3,314.
12.	The tax expense for the period was $7,660. The Taxes Payable account had a $1,060 beginning balance and an $976 ending balance.
13.	The Investments account had beginning and ending balances of $21,700 and $27,000, respectively. The company purchased investments for $18,800 cash during the period, and investments that cost $13,500 were sold for $24,000, resulting in a $10,500 gain.

4.

value:
10.00 points

Required information

Required

a.

Determine the amount of cash flow for each item and indicate whether the item should appear in the operating, investing, or financing activities section of a statement of cash flows. Assume York Company uses the direct method for showing net cash flow from operating activities. (Any cash outflow should be indicated by a minus sign. If there is no action select "No effect".)

b.	Prepare a statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

S.No	Particulars	Activity	Amount
1	Sales on account were $282,900. The beginning receivables balance was $94,200 and the ending cash balance was $76,700.	Operating	300400
2	Salaries expense for the period was $55,540. The beginning salaries payable balance was $3,798 and the ending balance was $2,170.	Operating	-57168
3	Other operating expenses for the period were $122,750. The beginning other operating expenses payable balance was $4,130 and the ending balance was $7,802.	Operating	-119078
4	Recorded $19,300 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $13,950 and $33,250, respectively.	NA	---------
5	The Equipment account had beginning and ending balances of $213,940 and $248,140 respectively. There were no sales of equipment during the period.	Investing	-34200
6	The beginning and ending balances in the Notes Payable account were $52,400 and $154,900, respectively. There were no payoffs of notes during the period.	Financing	102500
7	There was $5,779 of interest expense reported on the income statement. The beginning and ending balances in the Interest Payable account were $1,505 and $1,003, respectively.	Financing	-6281
8	The beginning and ending Merchandise Inventory account balances were $89,890 and $107,868, respectively. The company sold merchandise with a cost of $153,141 (cost of goods sold for the period was $153,141). The beginning and ending balances in the Accounts Payable account were $9,390 and $11,362, respectively.	Operating	-169147
9	The beginning and ending balances in the Notes Receivable account were $5,100 and $10,200, respectively. Notes receivable result from long-term loans made to employees. There were no collections from employees during the period.	Investing	-5100
10	The beginning and ending balances in the Common Stock account were $100,000 and $122,000, respectively. The increase was caused by the issue of common stock for cash.	Financing	22000
11	Land had beginning and ending balances of $53,200 and $40,566, respectively. Land that cost $12,634 was sold for $9,320, resulting in a loss of $3,314.	Investing	9320
12	The tax expense for the period was $7,660. The Taxes Payable account had a $1,060 beginning balance and an $976 ending balance.	Operating	-7744
13	The Investments account had beginning and ending balances of $21,700 and $27,000, respectively. The company purchased investments for $18,800 cash during the period, and investments that cost $13,500 were sold for $24,000, resulting in a $10,500 gain.	Investing	-18800(purchase) 24000 (sold)

Statement of Cash Flow :-

Cash Flow from Operating Activities:-
Cash collection from customer	300400
Salary Exp Paid	-57168
Operating Exp Paid	-119078
Cost of goods sold	-169147
Tax exp paid	-7744
Cash Flow from Operating Activities (A)	-52737	-52737
Cash Flow from Investing Activities:-
Equipment Purchase	-34200
Notes Receivable	-5100
Land sold	9320
Investment Purchase	-18800
Investment Sold	24000
Cash Flow from Investing Activities (B)	-24780	-24780
Cash Flow from Operating Activities:-
Notes Payable	102500
Int Exp	-6281
Common stock issue	22000
Cash Flow from Operating Activities (C)	118219	118219
Net Cash Inflow/Outflow (A+B+C)		40702
Beginning cash Balance		28400
Ending Cash Balance		69102