Exercise 5-16 (Part Level Submission) A comparative balance sheet for Larkspur Corporation is presented below. December 31 Assets 2017 2016 Cash $ 72,660 $ 22,000 Accounts receivable 83,490 67,830 Inventory 181,490 190,830 Land 72,490 111,830 Equipment 261,490 201,830 Accumulated Depreciation-Equipment (70,490 ) (43,830 ) Total $601,130 $550,490 Liabilities and Stockholders' Equity Accounts payable $ 35,490 $ 48,830 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings 201,640 137,660 Total $601,130 $550,490 Additional information: 1. Net income for 2017 was $127,980. No gains or losses were recorded in 2017. 2. Cash dividends of $64,000 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Collapse question part (a) Prepare a statement of cash flows for 2017 for Larkspur Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Statement of cash flow :
Cash flow from operating activities | ||
Net income | 127980 | |
Adjustment to reconcile net income to net cash flow from operating activities | ||
Depreciation expense | 26660 | |
Increase account receivable | -15660 | |
Decrease inventory | 9340 | |
Decrease account payable | -13340 | |
7000 | ||
Net cash flow from operating activities | 134980 | |
Cash flow from investing activities | ||
Sale of land | 39340 | |
Equipment purchase | -59660 | |
Net cash used in investing activities | -20320 | |
Cash flow from financing activities | ||
Dividend paid | -64000 | |
Net cash used in financing activities | -64000 | |
Net cash flow | 50660 | |
Beginning Cash | 22000 | |
Ending cash | 72660 | |
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