(2)

Parti

38b 48. Balance sheet data and additional information for Anderson Industries are given below for Anderson Industries 15 points

Partial Balance Sheet

December 31, 2016 and 2015

Assets

	2016	2015
Cash ..........	$70,000	$10,000
Accounts receivable ....	80,000	92,000
Inventory ...	65,000	43,000

43,000

Liabilities

Accounts payable ...95,000 75,000

$75,000

Additional Information:

(a)	Net income for 2016 was $50,000.
(b)	Depreciation expense for 2016 was $25,000.

Prepare the operating activities section of the statement of cash flows, using the indirect method, for the year ending December 31, 2016.

Anderson Industries Partial Statement of Cash Flows--Operating Activities For the Year Ended December 31, 2016
Cash flows from operating activities:
Net income .................................				$ 50,000
Adjustments:
	Depreciation ...........................
	Decrease in accounts receivable ........
	Increase in inventory ..................
	Increase in accounts payable ...........
Net cash provided by operating activities .... b. Assume equipment was purchased for 25,000 in 2016. Which section is this shown on the statement of cash flows and is it an increase or a decrease?				$ ,000

c. Assume Common Stock was sold for 125,000 in 2016. Which section is this shown on the statement of cash flows and is it an increase or a decrease?

Ass449. Clay Music Company was formed on December 1, 2016. The following information is available from Clayton's inventory records: 15 points

	Units	Unit Cost
Balance at January 1, 2016 .......	4,800 @	$14.25
Purchases:
January 17, 2016 .............	9,000 @	15.00
December 7, 2016 ..........................	12,000 @	17.00

The company uses a periodic inventory system, and a physical inventory on Dec. 31, 2016, shows 9,600 units on hand.

How many units were sold in 2016?

Prepare a schedule to compute the ending inventory at December 31, 2016, under each of the following inventory methods:

(1)	FIFO _____Units * $ =
(2)	LIFO _____Units * $ =

(3)	Weighted Average _____Units * $ =