Question

Accounts payable increase Accounts recevable increase Accrued abilities decrease Amortization expense Cash balance january 1 Cash balance December 31 Carcha das duidends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from sale of equipment Deprecation expense Gain on sale of equipment Inventory decrease 515.300 6.800 5.100 10.200 37.400 25,500 49.300 15 000 102.000 59.500 28.900 49.300 6,800 22.100 129.200 3.400 Support Prepsd expenses increase Averare current abilities a. Use negative siens with cash outflow answers. LUND CORPORATION Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Net Income A deduct) items to convert net income to cash basis Depreciation Amortization Gain on sale of Equipment Accounts Receivable increase Inventory Decrease Prepaid Expenses increase Accounts Payable increase Accrued liabilities Decrease Cash Flow Provided by Operating Activities Cash flow from investing Activities Sale of Equipment Purchase of Land Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Common Stock Retirement of Bonds Payable Payment of Dividends Cash Used by Financing Activities Net Decrease in Cash Cash at Beginning of Year Cash at End of Year OOO OOOoooo OOOOOOO b. Operating-cash-flow to current liabilities ratio (Round answer to two decimal places Check

Answer 1

$ 129,200 Lund Corporation Statement of Cash Flows For Year Ended December 31 Cash flow from Operating Activities Net Income Add (deduct) items to convert net income to acash basis Depreciation Amortization Gain on Sale of equipment Accounts Receivables Increase Inventory Decrease Prepaid Expenses Increase Accounts Payable Increase Accured liabilities Decrease Cash Flow provided by Operating activities $ $ $ $ $ $ 49,300 10,200 (6,800) (6,800) 22,100 (3,400) 15,300 (5,100) 204,000 Cash Flow from Investing Activities Sale of equipment Purchase of Land Cash used by Investing Activities $ $ $ 28,900 (153,000) (124,100)

Cash Flow from Financing Activities Issuance of Common stock Retirement of Bonds Payable Payment of Dividends Cash used by Financing Activities Net Decrease in Cash Cash balance, January 1 Cash balance, December 31 $ $ $ $ $ $ $ 59,500 (102,000) (49,300) (91,800) (11,900) 37,400 25,500 b). 1.13 Working notes : Current Liabilities = Average Current Liabilities +Increse in Current Liabilities = $170.000+$15,300-$5,100 = $180,200 Operating Cash flows to Current Liabilities Ratio = Operating cashflows/current liabilities = $204,000/$180,200 = $1.13