ACCOUNTING 2150-Here are comparative balance sheets for Velo Company.
Question # 00440645
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Updated on: 12/10/2016 06:35 AM Due on: 12/10/2016
Exercise 13-8
Here are comparative balance sheets for Velo Company.
| VELO COMPANY Comparative Balance Sheets December 31 | ||||
| Assets | 2017 | 2016 | ||
| Cash | $ 73,000 | $ 33,400 | ||
| Accounts receivable | 86,500 | 70,900 | ||
| Inventory | 170,000 | 187,000 | ||
| Land | 72,900 | 100,300 | ||
| Equipment | 261,000 | 200,700 | ||
| Accumulated depreciation—equipment | (66,000 | ) | (34,200 | ) |
| Total | $597,400 | $558,100 | ||
| Liabilities and Stockholders’ Equity | ||||
| Accounts payable | $ 35,400 | $ 47,000 | ||
| Bonds payable | 148,800 | 203,600 | ||
| Common stock ($1 par) | 216,500 | 175,300 | ||
| Retained earnings | 196,700 | 132,200 | ||
| Total | $597,400 | $558,100 |
Additional information:
| 1. | Net income for 2017 was $101,800. |
| 2. | Cash dividends of $37,300 were declared and paid. |
| 3. | Bonds payable amounting to $54,800 were redeemed for cash $54,800. |
| 4. | Common stock was issued for $41,200 cash. |
| 5. | No equipment was sold during 2017, but land was sold at cost. |
Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)
| VELO COMPANY Statement of Cash Flows For the Year Ended December 31, 2017December 31, 2017For the Month Ended December 31, 2017 | |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | |
| Decrease in Accounts Receivable Purchase of Equipment Issuance of Common Stock Decrease in Accounts Payable Redemption of Bonds Net Income Increase in Accounts Receivable Increase in Accounts Payable Sale of Land Increase in Inventory Payment of Cash Dividends Decrease in Inventory Depreciation Expense | $ |
| Adjustments to reconcile net income to | |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | |
| Increase in Accounts Receivable Decrease in Accounts Receivable Decrease in Accounts Payable Increase in Accounts Payable Purchase of Equipment Issuance of Common Stock Decrease in Inventory Increase in Inventory Sale of Land Payment of Cash Dividends Redemption of Bonds Net Income Depreciation Expense | $ |
| Net Income Decrease in Accounts Receivable Increase in Accounts Payable Redemption of Bonds Sale of Land Depreciation Expense Increase in Accounts Receivable Decrease in Accounts Payable Purchase of Equipment Decrease in Inventory Increase in Inventory Issuance of Common Stock Payment of Cash Dividends | |
| Increase in Accounts Receivable Decrease in Inventory Increase in Inventory Net Income Decrease in Accounts Receivable Redemption of Bonds Decrease in Accounts Payable Increase in Accounts Payable Sale of Land Purchase of Equipment Issuance of Common Stock Payment of Cash Dividends Depreciation Expense | |
| Net Income Redemption of Bonds Increase in Accounts Payable Purchase of Equipment Depreciation Expense Payment of Cash Dividends Decrease in Inventory Increase in Inventory Decrease in Accounts Payable Issuance of Common Stock Increase in Accounts Receivable Sale of Land Decrease in Accounts Receivable | |
| Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash | |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | |
| Decrease in Inventory Decrease in Accounts Payable Increase in Accounts Receivable Decrease in Accounts Receivable Increase in Accounts Payable Issuance of Common Stock Increase in Inventory Purchase of Equipment Redemption of Bonds Net Income Depreciation Expense Payment of Cash Dividends Sale of Land | |
| Increase in Inventory Issuance of Common Stock Decrease in Inventory Decrease in Accounts Payable Increase in Accounts Receivable Payment of Cash Dividends Redemption of Bonds Increase in Accounts Payable Sale of Land Purchase of Equipment Decrease in Accounts Receivable Net Income Depreciation Expense | |
| Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash | |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | |
| Increase in Accounts Payable Purchase of Equipment Decrease in Accounts Payable Decrease in Inventory Net Income Depreciation Expense Sale of Land Increase in Inventory Increase in Accounts Receivable Decrease in Accounts Receivable Issuance of Common Stock Payment of Cash Dividends Redemption of Bonds | |
| Payment of Cash Dividends Increase in Accounts Receivable Decrease in Accounts Receivable Increase in Accounts Payable Sale of Land Redemption of Bonds Net Income Increase in Inventory Purchase of Equipment Depreciation Expense Issuance of Common Stock Decrease in Inventory Decrease in Accounts Payable | |
| Depreciation Expense Decrease in Accounts Payable Decrease in Inventory Issuance of Common Stock Sale of Land Increase in Inventory Payment of Cash Dividends Increase in Accounts Payable Purchase of Equipment Decrease in Accounts Receivable Increase in Accounts Receivable Redemption of Bonds Net Income | |
| Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash | |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
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Rating:
/5
Solution: ACCOUNTING 2150-Here are comparative balance sheets for Velo Company.