To prepare the statement of cash flows, accountants for Franklin Electric Limited have summarized 2017 activity in
Question:
To prepare the statement of cash flows, accountants for Franklin Electric Limited have summarized 2017 activity in two accounts as follows:
Requirement
Prepare the statement of cash flows of Franklin Electric Limited for the year ended December 31, 2017, using the direct method to report operating activities. Also prepare the accompanying schedule of non-cash investing and financing activities.
Transcribed Image Text:
Cash Beginning balance Sale of long-term investment Collections from customers Issuance of common shares Receipts of dividends 53,600 21,200 661,700 47,300 17,100 Payments on accounts payable Payments of dividends Payments of salaries and wages 143,800 Payments of interest Purchase of equipment Payments of operating expenses 34,300 Payment of long-term note payable 41,300 Repurchase of common shares Payment of income tax 399,100 27,200 26,900 31,400 26,400 18,900 Ending balance 51,600 Common Shares Repurchase of common shares 26,400 Beginning balance Issuance for cash Issuance to acquire land Issuance to retire note pavable 110,800 47,300 80,100 19,000 230,800 for cancellation Ending balance 6 Franklin Electric Limited Income Statement For the Year Ended December 31, 2017 LRevenues Sales revenue 689,300 17,100 706,400 Dividend revenue 5 Total revenue Expenses and losses: Cost of goods sold Salary and wage expense Depreciation expense Other operating expense Interest expense Income tax expense Loss on sale of investments $402,600 150,800 19,300 44,100 28,800 16,200 1,100 7 10 12 13 14 15 Net income 16 Tota l expenses and losses 662,900 $ 43,500 Franklin Electric Limited Selected Balance Sheet Data 2017 2 Increase (Decrease) 3 Current assets (2,000) 27,600 (11,800) 600 (22,300) 12,100 80,100 4 Cash and cash equivalents Accounts receivable Inventories 6 7 Prepaid e 8 Long-term investments uipment, net 10 Land 11 Current liabilities: 12 13 14 Salary payable 15 16 17 Long-term note payable 18 Share capital 19 Retained earnings 20 Accounts payable Interest pavable (8,300) 1,900 7,000 10,400 (2,700) (60,300) 120,000 16,300 Other accrued liabilities Income tax payable
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Related Book For
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
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