Question

Question 3 Sedoya Corp. reported the following information on its 2015 and 2014 financial statements: 2015 2014 Change Cash Accounts Receivable Investments Property & Equipment Accumulated Depreciation Total Assets 67,000 181,000 52,000 298,000 (106,000) 492,000 78,000 185,000 74,000 240,000 (89,000) 488,000 (11,000) (4,000) (22,000) 58,000 (17,000) (16,000) Current Liabilities Capital Stock Retained Earnings Total Liabilities and Equity 135,000 160,000 197,000 492,000 151,000 160,000 177,000 488,000 20,000 Sedoya reported net income for 2015 of $60,000, including a gain on investments of $10,000. No new investments were purchased during the year. Equipment was purchased during the year, but no equipment was sold. Cash dividends of $30,000 were declared and paid in 2015. Show, in good form with proper titles, the statement of cash flows for Sedoya Corp.

Answer 1

$ 60,000 $ $ 17,000 (10,000 4,000 (16,000) $ $ Sedova Corp. Statement of Cash Flows For year Ended 2015 Cash flows from operating activities Net Income Addustments to reconcile net income to net cash flow from operating activities Depreciation Gain on Sale of Investment Decrease in Accounts receivables Decrease in Current Liabilities Net cash flow From operating activities Cash flows from investing activities: Cash receipts from sale of Investment Cash used for purchase of equipment Net cash flow from investing activities Cash flows from Financing activities: Cash paid for dividends Net cash flow from financing activities Net Increase (decrease) in cash Beginning cash balance Ending Cash Balance $ 55,000 $ 22,000 (58,000) $ $ (36,000) $ (30,000 $ (30,000) $ (11,000) $ 78,000 $ 67,000