Question

Saved GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information STREAMLINE INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Acc. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current Ilabilities Notes payable long term) Total liabilities Equity Common stock, 55 par value Retained earnings Total Libilities and equity Slee, 200 73,000 63.000 4.900 241,100 147,000 30,000. $352,100 $ 44,100 57,000 88,888 - 6,18 195,200 136,000 (12.ee) $319,200 $ 32,000 17,00 $ 26,000 7.ee 4.700 37,700 33.000 70,700 5209 54,200 65.000 119,200 240,00 $352,100 170,00 _30.000 $319,200 STREAMLINE INC Income Statement For Year Ended June 30, 2019 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operat e s 5772.00 472.000 300,000 74.00 other gains (losses) Cain on sale of equipment Income before taxes 140.00 160.000 20 5113.000 Additional Information A $33,000 note payable is retired at its $33,000 carrying book) value in exchange for cash b. The only changes affecting retained earnings are net income and cash dividends paid c. New equipment is acquired for $65.000 cash d. Received cast for the sale of equipment that had ost 554.000, vielasing 32900 gain • Prepaid Expenses and Wages Payable relate to other Expenses on the income statement 1. All purchases and sales of inventory are on credin Proy of

Answer 1

Streamline Inc. Cashflow Statement Indirect method Calculation Cash flows from from Operating Activities Net income 113,040 Adjustments to reconcile net income to net cash from operating activities Gain on sale of equipment (2,900) Depreciation expense 66,000 Changes in Working Capital Accounts Receivable (16,000) =57,000-73,000 Inventory 25,000 =88,000-63,000 Prepaid expenses 1,200 =6,100-4,900 Accounts Payable (6,000) =26,000-32,000 Wages Payable (10,000) =7,000-17,000 Income taxes Payable (500) =4,700-5,200 Net Cash Provided/(Used) by Operating Activities 169,840 Increase in current asset decreases cash Increase in current liabilities increases cash Cash flows from from Investing Activities Proceeds from sale of equipment Purchase of Equipment Net Cash Provided/(Used) by Investing Activities 14,900 As per below wkgs (65,000) (50,100) Clsg notes + notes repaid - Op notes Cash flows from from Financing Activities Repayment of Notes Proceeds from issue of Notes Proceeds from issue of common stock Dividends paid Net Cash Provided/(Used) by Financing Activities (33,000) 1,000 = 33,000+33,000-65,000 70,000 =240,000-170,000 (101,640) -41,400-113,040-30,000 (63,640) Clsg RE - Net Income - Op RE Net Change in Cash Cash at Beginning of Period Cash at End of Period 56,100 44,100 100,200 54,000 Workings Proceeds from sale of equipment Cost of equipment sold Accumulated Depreciation on equipment sold Opening Balance Depreciation expense Less Ending Balance Accumulated Depreciation on equipment sold Book Value of equipment sold Gain on sale of equipment Proceeds from sale of equipment 12,000 66,000 (36,000) 42,000 12,000 2,900 14,900