Question

Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 55,610 35,100 38.100 120.900 (41,400) $208.310 $ 30,400 710 47.000 93,500 $ 22,500 30,000 45,000 111.000 (34,500) $182,000 $ 26,500 1.000 57.000 69,000 28,500 $102,000 36.200 $200,00 $109,000 55.500 $ 12,900 Additional Data: 0. Bought equipment for cash, $9.900 b. Paid $10,000 on the long-term note payable. c. Issued new shares of stock for $24,500 cash d. Declared and paid a $4,700 cash dividend. e. Other expenses included depreciation, $6,900, salaries and wages, $10.900; taxes. $3,900; utilities. $8.900. f Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or Drehte hain pa

Answer 1

		Hunter Company
	Statement of Cash Flows
	for the year ended December 31,20XX
Cash flows from Operating Activities
Net income for the year						12,900
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation expense					6,900
Decrease in Accounts receivable					2900
Decrease in inventory					6900
increase in accounts payable					3900
Decrease in Salaries and wages payable					-290	20,310
Net cash flow from operating activities						33,210
Cash flows from Investing Activities:
Cash paid form purchase of Equipment					-9,900
Net cash used by investing activities						-9,900
Cash flows from financing activities
cash paid on the long term note payable					-10,000
cash from common stock issue					24,500
Cash dividend paid					-4,700
net cash flow from financing activities						9,800
Net increase in cash						33,110
cash at the beginning of the year						22,500
cash at year end						55,610