WEEK 5: GRADED ASSIGNMENT
Problem 1: Statement of Cash Flow
The following comparative balance sheets and other data are for Dayton Tent & Awning Sales, Inc.:
	Dayton Tent & Awning Sales, Inc.
	Comparative balance sheets
	For Two Years Ended December 31
		Current	Last Year
	Assets
	Cash	$441,800	$332,600
	Accounts receivable, net	750,750	432,900
	Merchandise inventory	819,000	850,200
	Prepaid Insurance	3,900	5,850
	Land	312,000	351,000
	Buildings	2,184,000	1,209,000
	Machinery and Tools	858,000	468,000
	Accumulated depreciation Machinery and Tool	-809,250	-510,900
	Total assets	$4,560,200	$3,138,650
	Liabilities and stockholders' equity
	Accounts payable	$226,750	275,500
	Accrued liabilities payable	185,800	111,700
	Long-term note payable	56,550	66,300
	Mortgage Bonds payable	382,200	185,250
	Common stock ($100 par)	1,755,000	585,000
	Paid-in capital in excess of par	58,500	-0-
	Retained earnings	1,895,400	1,914,900
	Total liabilities and stockholders' equity	$4,560,200	$3,138,650
a) Net income for the year was $128,000.
b) Depreciation for the year was $356,850.
c) There was a gain of $7,800 on the sale of land. The land was sold for $46,800 cash.
d) The additional mortgage bonds were issued at face value as partial payment for a building valued at $975,000. The amount of cash paid was $778,050.
e) Machinery and tools were purchased for $448,500 cash.
f) Fully depreciated machinery with a cost of $58,500 was scrapped and written off. (hint: no cash was received for this transaction)
g) Additional common stock was issued at $105 per share. The total proceeds were $1,228,500.
h) Dividends were declared and paid (hint: calculate amount of dividends paid).
i) A payment was made on the long-term note, $9,750.
1. Calculate the difference between each year for the current assets and current liabilities.
	Current Assets:	Current	Last Year	Difference
	Current Liabilities:
2. Prepare a statement of cash flows under the indirect method including a schedule of non-cash investing and financing activities.
Dayton Tent & Awning Sales, Inc
Statement of Cash Flows
For Year Ended December 31
Cash flows from operating:
Net Income
Adjustments to reconcile net income to net cash:
	Depreciation expense
	Total Adjustments
Net cash provided by operating activities
Cash flows from investing activities:
Net cash used by investing activities
Cash flows from financing activities:
Hint: Cash paid for dividends is [Beg Retained Earnings + Net Income - End Retained Earnings]
Net cash provided by financing activities
Net increase (decrease) in cash			[Operating + Investing + Financing]
	Ending Cash Balance
Noncash investing and financing activities:
	Mortgage bonds issued as partial payment of building
	Retirement of fully depreciated machinery
Total noncash investing and financing activities
Analyze this Statement of Cash Flows for Dayton Tent & Awning.