Question

Lane Company had the following Income Statement for 2017 and Balance sheets as of December 31, 2016 and 2017. Determine the net cash provided by or used for operating activities for 2017, the cash provided by or used for investing activities, and the cash provided by or used for financing activities.

Lane Company
Income Statement
For the year ended December 31, 2017
Sales	345,000
Cost of goods sold	201,000
Gross margin	144,000
Operating expenses	46,200
Income from operations	97,800
Loss on sale of equipment*	(1,000)
Income before taxes	96,800
Income tax expense	18,200
Net income	78,600

Lane Company
Balance Sheet
	December 31,2017	December 31,2016
Assets
Cash	$               124,000	$                  39,800
Accounts receivable	71,000	73,200
Merchandise inventory	68,000	72,000
Property and equipment	290,000	310,000
Less: Accumulated depreciation	(145,000)	(165,000)
	408,000	330,000
Accounts payable	$                  60,000	$                  55,000
Wages payable	2,700	2,200
Note payable, long-term	73,000	77,000
Contributed capital	102,400	89,400
Retained earnings	169,900	106,400
	408,000	330,000

*Lane sold equipment for $4,000. It had an original cost of $35,000 and accumulated depreciation of $30,000. There was a loss of $1,000 recognized on the sale. Lane sold stock for $13,000 and paid dividends of $15,100. Show dividends as a financing activity (rather than an operating activity).

Answer and show work:

What was depreciation expense?

What were acquisitions?

Cash provided by (if positive) or cash used for (if negative) operating activities:

Cash provided by (if positive) or cash used for (if negative) investing activities:

Cash provided by (if positive) or cash used for (if negative) financing activities:

Answer 1

Answers

Cash provided by (if positive) or cash used for (if negative) operating activities: Cash provided=$101300

Cash provided by (if positive) or cash used for (if negative) investing activities:Cash used = $11000

Cash provided by (if positive) or cash used for (if negative) financing activities: Cash used =$6100

Cash Flow Statement
Cash Flow from Operating Activities:
Net Income		$                 78,600.00
Add: Adjustments
Loss on sale of Equipment	$                     1,000.00
Depreciation expense	$                   10,000.00
increase in Accounts Payables	$                     5,000.00
Decrease in Accounts receivables	$                     2,200.00
Decrease in Inventory	$                     4,000.00
Increase in wages payable	$                         500.00
		$                 22,700.00
A. Cash Flow from Operating Activities		$             1,01,300.00
Cash Flow from Investing Activities:
Sale of Equipment	$                     4,000.00
Purchase of Equipment	$                (15,000.00)
B. Cash flow from Investing Activities		$               (11,000.00)
Cash Flow from Financing Activities:
Issue of Common Stock	$                   13,000.00
Dividend paid	$                (15,100.00)
Retirement of notes payable	$                   (4,000.00)
C. Cash Flow from Financing Activities		$                 (6,100.00)
Increase (Decrease) in cash [A+B+C]		$                 84,200.00
Add: cash at the beginning of the year		$                 39,800.00
Cash at the end of the year		$             1,24,000.00