Question

Sunny Technologies Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31,...

Sunny Technologies Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016 and 2017, is shown below along with some other information.

Sunny Technologies Inc.
Income Statement
For Year Ended December 31, 2017
  Revenues:
     Sales $ 628,100
     Cost of goods sold 484,100
  Gross Profit 144,000
  Expenses and other:
     Other expenses $ 156,100
     Depreciation expense 26,500
     Total operating expenses 182,600
    
  Operating Profit (Loss) (38,600)
    Loss on sales of plant assets     21,700
  Profit (Loss) $ (60,300)
Sunny Technologies Inc.
Post-Closing Trial Balance
December 31
Account 2017 2016
  Cash $ 64,200 $ 76,890
  Receivables 43,400 31,300
  Merchandise inventory 28,100 36,100
  Property, plant and equipment 231,300 190,490
  Accumulated depreciation 64,900 53,700
  Accounts payable 52,120 62,400
  Accrued liabilities 12,100 7,300
Notes payable 97,690 40,090
  Common shares 49,690 8,000
  Retained earnings 90,500 163,290


Other information regarding Sunny and its activities during 2017:
1. Assume all accounts have normal balances.
2. Cash dividends were declared and paid during the year.
3. Plant assets were sold during the year.
4. Plant assets worth $100,100 were purchased during the year by paying cash of $32,900 and issuing a long-term note payable for the balance.

Required:
Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2017. (List any deduction in cash and cash outflows and loss as negative amount

Business   Accounting   
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Homework Answers

Answer #1

Statement of cash flow :

Cash flow from operating activities
Net loss -60300
Adjustment to reconcile net income
Depreciation expenses 26500
Loss on sal eof plant assets 21700
Increase in account receivable (12100)
Decrease inventory 8000
Decrease account payable (10280)
increase accured liabilities 4800
Net cash flow from operating activities -21680
Cash flow from investing activities
Sale of property,plant and equipment 22290
Purchase of property,plant and equipment (32900)
Net cash flow from investing activities -10610
Cash flow from financing activities
nOtes payable repaid (9600)
Issue common stock 41690
Dividend paid (12490)
Net cash flow from financing activities 19600
Net cash flow -12690
Beginning cash 76890
Ending cash 64200
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