Question

1 3 Minneapolis, Inc. is a small shop in the neighborhood that sells fruit. The owner of the shop, Ms. Foster, hired 4 you to help with her accounting. The previous accountant got married and left the company. Ms. Foster 5 was able to finish the financial statement except the statement of cash flow so she asked you to prepare the s statement of cash flow as your first job. 7 8 Ms. Foster prepared the following financial statements. 2018 2017 Minneapolis Inc. Statement of Retained Earnings For the Month Ended December 31, 2018 Retained Earnings, January 1, 2012 $ 333,500.00 Add: Net Income $ 107,000.00 Subtotal $ 440,500.00 Less: Dividends $ 15,000.00 Retained Earnings, December 31, 2012 $ 425,500.00 $ $ $ 0 1 2 Minneapolis Inc. 3 Income Statement 4 For the Month Ended December 31, 2018 5 Total Revenues $ 400,000.00 6 Cost of Goods Sold $ 250,000.00 7 Gross Profit $ 150,000.00 8 Operating Expenses 9 Salaries Expense $ 18,000.00 CO Depreciation Expense $ 20,000.00 -1 - Insurance expense $ 8,000.00 Rent expense $ 2,000.00 3 - Utilities expense $ 2,500.00 -4 - Miscellaneous expenses $ 500.00 -5 Total Operating Expenses $ 51,000.00 26 Operating Profit $ 99,000.00 7 Interest income $ 8,000.00 8 Net Income $ 107,000.00 -9 25,000.00 S 18,000.00 $ 12,000.00 $ 55,000.00 $ 70,000.00 12,000.00 10,000.00 92,000.00 $ Minneapolis Inc. Balance Sheet December 31, 2017 & 2018 ASSETS 2018 2017 LIABILITIES CURRENT ASSETS: CURRENT LIABILITIES: Cash $ 40,000.00 $ 25,000.00 Accounts Payable Accounts Receivable $ 65,000.00 S 45,000.00 Salaries Payable Supplies $ 50,000.00 $ 30,000.00 Accrued liabilities Inventory $ 409,000.00 $ 450,000.00 Total Current Liabilities Prepaid expense $ 86,000.00 $ 75,000.00 Total Current Assets $ 650,000.00 $ 625,000.00 LONG-TERM LIABILITIES; Bonds Payable FIXED ASSETS: Notes Payable Land $ 45,500.00 $ 45,500.00 Total Long-term Liabilities Building $ 150,000.00 $ 125,000.00 Accumulated depreciation - building $ (55,000.00) $ (40,000.00) STOCKHOLDERS' EQUITY Equipment $ 55,000.00 $ 40,000.00 Common Stock Accumulated depreciation - equipment (20,000.00) (15,000.00) Retained Earnings Total Fixed Assets $ 175,500.00 $ 155,500.00 Total Stockholders' Equity $ 80,000.00 $ 100,000.00 $ 85,000.00 $ 75,000.00 $ 165,000.00 $ 175,000.00 $ 180,000.00 $ 180,000.00 $ 425,500.00 $ 333,500.00 $ 605,500.00 $ 513,500.00 Total Assets $ 825,500.00 $ 780,500.00 Total Liabilities & Stockholders' Equity $ 825,500.00 $ 780,500.00 0 1 =2 -3 -4 5 -6 7 8 9 Additional info: Fixed assets purchase during the year: Building Equipment $ $ 25,000.00 15,000.00

Answer 1

Page Minneapolis Inc Statement of Cash flow for the Month Ended December 31, 2018 Cash flow fram operating Activities Net Income $ 107000 Adfushnet Add Deples ciation $ 20,000 change in Accounts Receivabee ($20,000) Change in sopplies ($20,000) Change in Inventory $ 45,000 Chonge in Prefeid Expense ($ 11000) Change in Accounts Payable ($45croo) Change in Salaries lauable $ 6000 Chonge in Accrved Lialieties $2000 bet Cash flow from operating Activity $80,000 cash flow fream Investing scrivities urchase of Building -$2sovo) Purchase of cooipuut (a 15000) & 40ooo Net Calle flow freau Investing Activity ash flow fram financing Activities (&isovo) Dividend peid ($20000) Rodenption of Bend Jssve of notes. $250oo) ver Cash flow fecan financing Activity Net change in Cash desing year tisooo casooo Begining Case balance $ loooo Ending case balance ( $ 10000 Add