Complete the following using the information from the Study Questions and Problems at the end of Chapter 4, on pages 193 - 194, as indicated below:

Question 4.9 - Using the condensed financial statements for Dragoon Enterprises that are provided on page 193, you will need to provide information as follows:

(a) Dividends Dragoon paid.

(b) Information from the statement of cash flows using the indirect method including:

1. Net cash provided (used) by operations.

2. Net cash provided (used) by investing activities.

3. Net cash provided (used) by financing activities.

4. Net increase (decrease) in cash.

Question 4.10 - Using the income statements and changes in balance sheet accounts provided for Firms A and B, you will need to provide the following information:

(a) Dividends paid by Firms A and B.

(b) Information from the statement of cash flows for Firms A and B including:

1. Net cash provided (used) by operations.

2. Net cash provided (used) by investing activities.

3. Net cash provided (used) by financing activities.

4. Net increase (decrease) in cash.

(c) Summary analysis of the statements of cash flows for Firms A and B (see Exhibit 4.6 on page 181 of your textbook):

1. Total inflows for Firm A

2. Total outflows for Firm A

3. Total inflows for Firm B

4. Total outflows for Firm B

5. Using the information from the statements of cash flows and the summary analysis,

you will answer multiple-choice questions analyzing Firms A and B's cash flows.

X Meme 194 CHAPTER 4 Statement of Cash Flows 4.10. The following income statement and balance sheet information are available for two (a) Calculate the amount of dividends Firm A and Firm B paid using the information (b) Prepare a statement of cash flows for each firm using the indirect method. firms, Firm A and Firm B. given. (c) Analyze the difference in the two firms. Income Statement for Year Ended December 31, 2015 Firm B Firm A $1,000,000 700,000 $1,000,000 700,000 300,000 Sales Cost of goods sold Gross profit Other expenses Selling and administrative Depreciation Interest expense Earnings before taxes Income tax expense 300,000 115,000 30,000 120,000 10,000 5,000 20,000 150,000 150,000 75,000 75,000 $ 75,000 75,000 Net Income Changes in Balance Sheet Accounts December 31, 2014, to December 31, 2015 Firm B Firm A Cash and cash equivalents Accounts receivable S+10,000 0 +5,000 +40,000 Inventory +40,000 -10,000 Property, plant, and equipment Less accumulated depreciation +20,000 +70,000 (+10,000) S+90,000 (+30,000) $ +45,000 $ -5,000 Total Assets Accounts payable Notes payable (current) Long-term debt Deferred taxes (noncurrent) $-20,000 +17,000 +2,000 +20,000 -10,000 Capital, stock Retained earnings Total Liabilities and Equity +3,000 +18,000 +70,000 $+90,000 +40,000 S+45,000 O O O Meme P O CHAPTER 4 Statement of Cash Flous 193 4.9. Condensed financial statements for Dragoon Enterprises follow. (a) Calculate the amount of dividends Dragoon paid using the information given. (b) Prepare a statement of cash flows using the indirect method. Dragoon Enterprises Comparative Balance Sheets December 31, 2015 and 2014 2015 2014 Cash $1,200 1,750 S 850 Accounts receivable 1,200 Inventory Plant and equipment Accumulated depreciation Long-term investments Total Assets 1,360 1,250 3,900 (1,100) 4,600 (1,200) 1,110 970 7.320 800 8,570 1,100 250 Accounts payable Accrued wages payable Interest payable Income tax payable Bonds payable Capital stock Paid-in capital Retained earnings Total Liabilities and Equity 350 120 70 50 200 1,400 1,100 1,000 930 70 400 3,600 $7,320 4,450 $8,570 Income Statement for Year Ended December 31, 2015 $9,500 Sales 6,650 Cost of goods sold Gross profit 2,850 Other expenses 1,200 Selling and administrative Depreciation 100 150 Interest 350 Income tax $1,050 Net income O O O X