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The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
| 1 | | Dec. 31, 20Y3 | Dec. 31, 20Y2 |
| 2 | Assets | | |
| 3 | Cash | $155,000.00 | $150,000.00 |
| 4 | Accounts receivable (net) | 450,000.00 | 400,000.00 |
| 5 | Inventories | 770,000.00 | 750,000.00 |
| 6 | Investments | 0.00 | 100,000.00 |
| 7 | Land | 500,000.00 | 0.00 |
| 8 | Equipment | 1,400,000.00 | 1,200,000.00 |
| 9 | Accumulated depreciation-equipment | (600,000.00) | (500,000.00) |
| 10 | Total assets | $2,675,000.00 | $2,100,000.00 |
| 11 | Liabilities and Stockholders Equity | | |
| 12 | Accounts payable (merchandise creditors) | $340,000.00 | $300,000.00 |
| 13 | Accrued expenses payable (operating expenses) | 45,000.00 | 50,000.00 |
| 14 | Dividends payable | 30,000.00 | 25,000.00 |
| 15 | Common stock, $4 par | 700,000.00 | 600,000.00 |
| 16 | Paid-in capital in excess of parcommon stock | 200,000.00 | 175,000.00 |
| 17 | Retained earnings | 1,360,000.00 | 950,000.00 |
| 18 | Total liabilities and stockholders equity | $2,675,000.00 | $2,100,000.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
| | a. The investments were sold for $175,000 cash. |
| | b. Equipment and land were acquired for cash. |
| | c. There were no disposals of equipment during the year. |
| | d. The common stock was issued for cash. |
| | e. There was a $500,000 credit to Retained Earnings for net income. |
| | f. There was a $90,000 debit to Retained Earnings for cash dividends declared. |
Required:
| | Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. |
| Labels | |
| Cash flows from (used for) operating activities | |
| Cash flows from (used for) investing activities | |
| Cash flows from (used for) financing activities | |
| December 31, 20Y3 | |
| For the Year Ended December 31, 20Y3 | |
| Amount Descriptions | |
| Cash paid for dividends | |
| Cash paid for merchandise | |
| Cash paid for purchase of equipment | |
| Cash paid for purchase of land | |
| Cash received from customers | |
| Cash received from sale of common stock | |
| Cash received from sale of investments | |
| Cash balance, January 1, 20Y3 | |
| Cash balance, December 31, 20Y3 | |
| Decrease in accounts payable | |
| Decrease in accounts receivable | |
| Decrease in accrued expenses payable | |
| Decrease in inventories | |
| Depreciation | |
| Gain on sale of investments | |
| Increase in accounts payable | |
| Increase in accounts receivable | |
| Increase in accrued expenses payable | |
| Increase in cash | |
| Increase in inventories | |
| Loss on sale of investments | |
| Net cash flows from operating activities | |
| Net cash flows used for operating activities | |
| Net cash flows from investing activities | |
| Net cash flows used for investing activities | |
| Net cash flows from financing activities | |
| Net cash flows used for financing activities | |
| Net decrease in cash | |
| Net income | |
| Net increase in cash | |
| Net loss | |
Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities.
Statement of Cash Flows Instructions
| Livers Inc. |
| Statement of Cash Flows |
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| 3 | Adjustments to reconcile net income to net cash flows from (used for) operating activities: | | |
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| 6 | Changes in current operating assets and liabilities: | | |
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