| | A comparative balance sheet for Rocker Company appears below: | ROCKER COMPANY Comparative Balance Sheet | | | | Dec. 31, 2018 | Dec. 31, 2017 | | Assets | | Cash | $ 33,000 | $10,000 | | | Accounts receivable | 18,000 | 14,000 | | | Inventory | 25,000 | 18,000 | | | Prepaid expenses | 6,000 | 9,000 | | | Long-term investments | -0- | 18,000 | | | Equipment | 60,000 | 32,000 | | | Accumulated depreciationequipment | (20,000) | (14,000) | | | | Total assets | $122,000 | $87,000 | | | Liabilities and Stockholders' Equity | | Accounts payable | $ 17,000 | $ 7,000 | | | Bonds payable | 37,000 | 47,000 | | | Common stock | 40,000 | 23,000 | | | Retained earnings | 28,000 | 10,000 | | | | Total liabilities and stockholders' equity | $122,000 | $87,000 | | | | | | | | | | | | | Additional information: | 1. | Net income for the year ending December 31, 2018 was $33,000. | | 2. | Cash dividends of $15,000 were declared and paid during the year. | | 3. | Long-term investments that had a cost of $18,000 were sold for $14,000. | | 4. | Sales for 2018 were $120,000. | Instructions Prepare a statement of cash flows for the year ended December 31, 2018, using the indirect method. | | ROCKER COMPANY | | | | | Statement of Cash Flows | | | | | For the Year Ended December 31, 2018 | | | | 1 | Cash Flow from Operating Activities | | | | | | | | 2 | | Net Income | | | | | 33,000 | | | | 3 | Depriecation Expense | | | 6,000 | | | 3 | | | 4 | Accounts Recievable | | | -4,000 | | | 4 | | | 5 | Inventory | | | | -7,000 | | | 5 | | | 6 | Prepaid Expenses | | | -3,000 | | | 6 | | | 7 | Loss PPE | | | | | | 7 | | | 8 | Accounts Payable | | | 10,000 | | | 8 | | | 9 | Acru | | | | | | | 9 | | | 10 | | | | | | | | 10 | | | 11 | | | | | | | | 11 | | | 12 | Cash Flow from Investing Activities | | | | | 12 | | | 13 | Investment | | | | | | 13 | | | 14 | Equipment purchase | | | | | | 14 | | | 15 | Equipment Sold | | | | | | 15 | | | 16 | | | | | | | | 16 | | | 17 | | | | | | | | 17 | | | 18 | Cash Flow from Financing Activities | | | | | 18 | | | 19 | Bonds Payable | | | | | | 19 | | | 20 | Common Stock | | | | | | 20 | | | 21 | Dividens | | | | | | | 21 | | | 22 | | | | | | | | 22 | | | 23 | | | | | | | | 23 | | | 24 | | | | | | | | 24 | | | 25 | | | | | | | | 25 | | | 26 | | | | | | | | 26 | | | 27 | | | | | | | | 27 | | | 28 | | | | | | | | 28 | | | 26 | | | | | | | | 26 | | | 27 | | | | | | | | 27 | | | 28 | | | | | | | | 28 | | I found my question and answers. sorry for the inconvience Rocker CompanyCash Flow StatementFor the Year ended Dec 31, 2012Amount($)Cash Flow from Operating activities:Net Income33000Add: Loss on sale of Long term Investment4000Add: Depreciation on Equipment6000Adjustment of Working Capital:Increase in Accounts Receivable -4,000Increase in Inventory-7,000Decrease in Prepaid Expense3,000Cash Flow from Opearating ActivitiesA45,000Cash Flow from Investing Activities:Sale of Long term Investment 14,000Purchase of Equipment-28,000Cash Flow from Investing ActivitiesB-14,000Cash Flow from Financing Activities:Redemption of Bonds -10,000Issue of Common Stock17000Cash Dividend-15,000Cash flow from Financing ActivitiesC-8,000Net Cash flow for the yearD=A+B+C23,000Opening CashE10,000Closing CashF=D+E33,000 |
