Analysts following the Tomkovick Golf Company were given the following balance sheet information for the years ended
Question:
In addition, it was reported that the company had a net income of $3,155,848 and that depreciation expenses were equal to $212,366 during 2017. Assume amortization expense was $0 in 2017.
a. Construct a 2017 cash flow statement for this firm.
b. Calculate the net cash provided by operating activities for the statement of cash flows.
c. What is the net cash used in investing activities?
d. Compute the net cash provided by financing activities.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Assets 2017 2016 $ 33,411 16,566 318,768 352,740 Cash and marketable securities %24 Accounts receivable 260,205 Inventory 423,819 41,251 $ 758,686 Other current assets 29,912 $ 717,986 Total current assets Plant and equipment Less: Accumulated depreciation Net plant and equipment Goodwill and other assets 1,931,719 (419,044) $1,512,675 1,609,898 (206,678) $1,403,220 412,565 382,145 $2,653,506 $2,533,771 Total assets Liabilities and Equity 2017 2016 $ 378,236 14,487 $ 332,004 7,862 16,815 $ 356,681 Accounts payable and accruals Notes payable Accrued income taxes 21,125 $ 413,848 679,981 $1,093,829 Total current liabilities Long-term debt Total liabilities 793,515 $1,150,196 Preferred stock 10,000 Common stock (10,000 shares) 10,000 975,465 398,1 10 Additional paid-in capital Retained earnings Less: Treasury stock Total common equity 975,465 587,546 (13,334) $1,559,677 $1,383,575 Total liabilities and equity $2,653,506 $2,533,771
Step by Step Answer:
a Tomkovick Golf Company Statement of Cash Flows Year Ended June 30 2017 Operating Activities Net in...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
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