Question

Please help to fix my numbers

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for National Intercable Company. Add itional information from NIC's accounting records is provided also. 2 NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 6.66 points 2018 2017 Assets Cash 106 95 Accounts receivable Less: Allowance for uncollectible 280 275 Print (6) (8) accounts References Prepaid insurance Inventory Long-term investment 10 4 255 262 50 75 180 180 Land Buildings and equipment Less: Accumulated depreciation 322 280 (85) (118) 29 Trademark 30 $1,107 $1,109 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable 38 54 4 5 20 17 0 79 285 115 Less: Discount on bonds (28) (25 Shareholders' Equity 290 Common stock 270 Paid-in capital-excess of par Preferred stock Retained earnings 110 90 0 50 426 416 $1,109 $1,107

Answer 1

	Working
	Cash received from customers
	Sales	$                          420.00
	Less: Increase in Accounts receivable	$                             -5.00
	Cash received from customers	$                          415.00
	Cost of goods sold	$                          170.00
	Add:Increase in Inventory	$                               7.00
	Purchases	$                          177.00
	Add: Decrease in Accounts Payable	$                             16.00
	Cash paid for inventory	$                          193.00
	Wages Expense	$                             62.00
	Add: Decrease in wages Payable	$                               1.00
	Cash paid for wages	$                             63.00
	Insurance Expense	$                             24.00
	Less: decrease in Prepaid Expenses	$ 6.00
	Cash Paid for Insurance	$                             30.00
	Bonds Expense	$                             40.00
	Less: Decrease in Bonds discount	$                             -3.00
	Cash Paid for Bonds expense	$                             37.00
	Income Tax expense	$                             27.00
	Less :Increase in income tax payable	$                               3.00
	Cash paid for income taxes	$                             24.00
	National Intercable Company
	Statement of Cash Flow(Direct Method)
	For the year ended december 31,2018
		(amount in million)
	Cash Flow from operating activities
	Cash Received from customer	$                          415.00
	Investment Income($16-$9)	$                               7.00
	Gain on sale of Investment	$                             (4.00)
	Cash paid to supplier	$                        (193.00)
	Cash paid to employees	$                          (63.00)
	Cash Paid for Insurance	$                          (30.00)
	Cash paid for Bonds interest	$                          (37.00)
	Cash paid for Income Taxes	$                          (24.00)
	Net Cash from operating activity	$                             71.00
	Cash Flow from investing activities
	Sale of long term investment (Point b)	$                             38.00
	Sale of building parts(Point d)	$                               4.00
	Net cash used by investing activities	$                             42.00
	Cash flow from financing activities
	Cash received from issue of common stock(Point g)	$                             40.00
	Retirement of Bonds payable(point f)	$                        (170.00)
	Cash received from issue of Preferred stock(Point g)	$                             50.00
	Dividend Paid(point h)	$                          (22.00)
	Net cash used by financing activities	$                        (102.00)
	Net increase in cash	$                             11.00
	Cash January 1,2018	$                             95.00
	Cash December 31st 2018	$                          106.00