Question

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

The comparative balance sheets of Cullumber Inc. at the beginning and the end of the year 2020 are as follows.

CULLUMBER INC.
BALANCE SHEETS

Dec. 31, 2020

Jan. 1, 2020

Inc./Dec.

Assets

Cash

$ 48,060 $ 16,060 $32,000 Inc.

Accounts receivable

95,240 89,180 6,060 Inc.

Equipment

43,240 23,180 20,060 Inc.

Less: Accumulated Depreciation-Equipment

21,240 11,000 10,240 Inc.

    Total

$165,300 $117,420

Liabilities and Stockholders’ Equity

Accounts payable

$ 24,240 $ 16,180 8,060 Inc.

Common stock

103,060 81,180 21,880 Inc.

Retained earnings

38,000 20,060 17,940 Inc.

    Total

$165,300 $117,420


Net income of $48,240 was reported, and dividends of $30,300 were paid in 2020. New equipment was purchased and none was sold.

Prepare a statement of cash flows for the year 2020. (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
Cullumber Inc
Statement of Cash flows ( Indirect method) for the year 2020
Particulars Amount
Cash flows from Operations
Net Income (Net Loss) 48240
Adjustments to reconcile net income to net cash (Used ) provided by operating activities
Depreciation Expense 10240
Net Cash provided (used) by Operating Activities
Increase in Account Receivable (6060)
Increase in Accounts payable 8060
Net Cash provided by Operating Activities 60480
Cash flows from Investing Activities
Purchase of Equipment (20060)
Cash used by Investing Activities (20060)
Cash flows from Financing Activities
Cash dividends paid (30300)
Issue of common stock 21880
Cash used by Financing Activities (8420)
Net Increase In cash 32000
Add: Beginning Cash Balance 16060
Ending Cash Balance 48060
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