ACCT 2021 Cash Flows- Exercise SOLUTION Problem: The comparative Balance Sheet of Alliance Structures Inc. for December 31, 2019 and 2018 is as follows. Complete the Statement of Cash Flows on the next page for the year ended December 31, 2019. 12/31/2019 12/31/2018 Assets Cash Accounts Receivable Inventory $90 $23 30 27 24 21 Land 35 55 Equipment 32 22 Accumulated Depreciation-Equipment (9) (5) Total $202 $143 Liabilities and Stockholders' Equity Accounts Payable $17 $10 Dividends Payable 1 Common Stock, $1 par 6 3 Paid-in Capital in Excess of Par-Common 30 10 Retained Earnings 148 120 Total $202 $143 Additional Information: Use the t-accts below where needed. Net Income for the year ended 12/31/2019 was $40. Land was sold for $15. (Use the t-accts below to solve for the Gain or Loss on the sale) Cash Land 55 Bal. 35 Bal. Equipment was acquired for cash. There were no disposals of Equipment during the year. Loss on Sale of Land 5 The Common Stock was issued for Cash. The cash received was $23. (Use t-accts below) Cash Common Stock 3 Bal. 6 Bal. Paid-In Capital 10 Bal. 30 Bal. Cash dividends declared for the year ended 12/31/2019 was $12. However, cash paid for Dividends was $11. (Use t-accts below) HINT: Record the declaration entry first. Then, record the cash paid for dividends. If you get stuck, review the entries from Ch 11!!!! Cash Dividends Dividends Payable Bal. 1 Bal. Alliance Structures, Inc. Statement of Cash Flows For the Year Ended December 31, 2019 Cash Flows from Operating Activities: Net Income Add: Less: Net Cash Flow from Operating Activities: Cash Flows from Investing Activities: Add: Less: Net Cash Flow from Investing Activities: Cash Flows from Financing Activities: Add: Less: Net Cash Flow from Financing Activities: Increase (Decrease) in Cash Cash at Beginning of Year Cash at End of Year $ $ 5 S $ $ $ S $ QUESTIONS: YOU DO NOT NEED TO UPLOAD YOUR COMPLETED EXERCISE AT THIS TIME. Just answer the questions below in the order they are posed by clicking the Submit Answer button. a) After completing the Statement of Cash Flows, what is the correct amount for the Net Cash Flow from Operating Activities? See circle on the printed exercise. (10 points for correct answer. No partial credit). b) After completing the Statement of Cash Flows, what is the correct amount for the Net Cash Flow from Investing Activities? See circle on the printed exercise. (5 points for correct answer. No partial credit). c) After completing the Statement of Cash Flows, what is the correct amount for the Net Cash Flow from Financing Activities? See circle on the printed exercise. (5 points for correct answer. No partial credit)