A statement of cash flows for Friendly Markets, Inc., for 20X1 appears below. Operations (1) Net income
Question:
A statement of cash flows for Friendly Markets, Inc., for 20X1 appears below.
Operations | |
(1) Net income | $ 1,161,442 |
Adjustments for noncash transactions: | |
(2) Depreciation and amortization | 496,106 |
(3) Retirement contributions paid in common stock | 256,110 |
(4) Deferred income taxes | 27,018 |
(5) Loss on disposal of property, plant, and equipment | 32,482 |
(6) Loss on sale of investments | 6,801 |
(7) Net amortization of investments | 15,625 |
Change in operating assets/liabilities providing (requiring) cash: | |
(8) Trade receivables | (140,082) |
(9) Merchandise inventories | 2,302 |
(10) Prepaid expenses | (5,825) |
(11) Accounts payable and accrued expenses | 103,014 |
(12) Self-insurance reserves | (14,381) |
(13) Federal and state income taxes | 33,186 |
(14) Other noncurrent liabilities | 24,434 |
Net cash provided by operating activities | |
Investing | |
(15) Payment for property, plant, and equipment | (693,489) |
(16) Proceeds from sale of property, plant, and equipment | 4,150 |
(17) Payment for investments | (1,133,449) |
(18) Proceeds from sale of investments | 777,381 |
Net cash used in investing activities | |
Financing | |
(19) Payment for acquisition of common stock | (629,453) |
(20) Proceeds from sale of common stock | 152,096 |
(21) Dividends paid | (325,295) |
(22) Other, net | 18,530 |
Net cash used in financing activities | (784,122) |
Net increase in cash | 168,703 |
Cash at beginning of year | 201,813 |
Cash at end of year | 370,516 |
Required:
Prepare the worksheet entry that would be made to prepare a cash flow statement for each of the numbered line items. For example, the worksheet entry for item (1) is as follows:
(1) DR Cash (operations—Net income) ...................................... $1,161,442
CR Retained earnings ...................................................................................... $1,161,442
Step by Step Answer:
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer