WileyPLUS

Net income

$43,400

Dividends paid

5,210

Increase in accounts receivable

11,440

Increase in accounts payable

8,490

Purchase of equipment (capital expenditure)

8,720

Depreciation expense

5,490

Issue of notes payable

24,020

STELLAR BEVERAGE COMPANY Statement of Cash Flows

$

$

$

Free Cash Flow

$

1.

Operating activity-add to net income.

2.

Operating activity-deduct from net income.

3.

Investing activity.

4.

Financing activity.

5.

Reported as significant noncash activity

Transactions

Classifications of Activities

(a)

Issuance of common stock.

(b)

Purchase of land and building.

(c)

Redemption of bonds

(d)

Sale of equipment.

(e)

Depreciation of machinery.

(f)

Amortization of patent.

(g)

Issuance of bonds for plant assets.

(h)

Payment of cash dividends.

(i)

Exchange of furniture for office equipment.

(j)

Purchase of treasury stock.

(k)

Loss on sale of equipment.

(l)

Increase in accounts receivable during the year.

(m)

Decrease in accounts payable during the year.

BRIDGEPORT INC. BALANCE SHEETS

Dec. 31, 2017

Jan. 1, 2017

Inc./Dec.

Assets

Cash

$ 46,620

$ 14,620

$32,000

 Inc.

Accounts receivable

95,230

90,610

4,620

 Inc.

Equipment

43,230

24,610

18,620

 Inc.

Less: Accumulated Depreciation-Equipment

21,230

11,000

10,230

 Inc.

    Total

$163,850

$118,840

Liabilities and Stockholders’ Equity

Accounts payable

$ 24,230

$ 17,610

6,620

 Inc.

Common stock

101,620

82,610

19,010

 Inc.

Retained earnings

38,000

18,620

19,380

 Inc.

    Total

$163,850

$118,840

BRIDGEPORT INC. Statement of Cash Flows

$

Adjustments to reconcile net income to

$

$

Code Letter

Effect

A

Added to net income in the operating section

D

Deducted from net income in the operating section

R-I

Cash receipt in investing section

P-I

Cash payment in investing section

R-F

Cash receipt in financing section

P-F

Cash payment in financing section

N

Noncash investing and financing activity

(a)

Purchase of land and building.

(b)

Decrease in accounts receivable.

(c)

Issuance of stock.

(d)

Depreciation expense.

(e)

Sale of land at book value.

(f)

Sale of land at a gain.

(g)

Payment of dividends.

(h)

Increase in accounts receivable.

(i)

Purchase of available-for-sale debt investment.

(j)

Increase in accounts payable.

(k)

Decrease in accounts payable.

(l)

Loan from bank by signing note.

(m)

Purchase of equipment using a note.

(n)

Increase in inventory.

(o)

Issuance of bonds.

(p)

Redemption of bonds payable.

(q)

Sale of equipment at a loss.

(r)

Purchase of treasury stock.

FLINT INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016

12/31/17

12/31/16

Cash

$5,900

$7,000

Accounts receivable

62,500

51,200

Short-term debt investments (available-for-sale)

35,300

17,900

Inventory

39,800

60,100

Prepaid rent

5,100

3,900

Equipment

155,200

130,400

Accumulated depreciation—equipment

(34,700

)

(25,200

)

Copyrights

45,500

50,400

Total assets

$314,600

$295,700

Accounts payable

$46,100

$39,900

Income taxes payable

4,100

6,000

Salaries and wages payable

8,000

4,000

Short-term loans payable

8,000

10,100

Long-term loans payable

60,400

69,100

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

58,000

36,600

Total liabilities & stockholders’ equity

$314,600

$295,700

FLINT INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue

$340,650

Cost of goods sold

175,900

Gross profit

164,750

Operating expenses

121,000

Operating income

43,750

Interest expense

$11,500

Gain on sale of equipment

2,000

9,500

Income before tax

34,250

Income tax expense

6,850

Net income

$27,400

1.

Dividends in the amount of $6,000 were declared and paid during 2017.

2.

Depreciation expense and amortization expense are included in operating expenses.

3.

No unrealized gains or losses have occurred on the investments during the year.

4.

Equipment that had a cost of $20,200 and was 70% depreciated was sold during 2017.

FLINT INC. Statement of Cash Flows

$

$

$

MARIN INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016

12/31/17

12/31/16

Cash

$6,000

$7,000

Accounts receivable

62,600

50,600

Short-term debt investments (available-for-sale)

35,200

18,100

Inventory

39,600

59,700

Prepaid rent

5,000

4,000

Equipment

152,800

128,900

Accumulated depreciation—equipment

(34,900

)

(24,800

)

Copyrights

45,900

49,800

Total assets

$312,200

$293,300

Accounts payable

$45,900

$39,900

Income taxes payable

4,000

6,000

Salaries and wages payable

8,100

3,900

Short-term loans payable

8,000

10,000

Long-term loans payable

60,500

68,500

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

55,700

35,000

Total liabilities & stockholders’ equity

$312,200

$293,300

MARIN INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue

$337,675

Cost of goods sold

175,500

Gross profit

162,175

Operating expenses

119,500

Operating income

42,675

Interest expense

$11,300

Gain on sale of equipment

2,000

9,300

Income before tax

33,375

Income tax expense

6,675

Net income

$26,700

1.

Dividends in the amount of $6,000 were declared and paid during 2017.

2.

Depreciation expense and amortization expense are included in operating expenses.

3.

No unrealized gains or losses have occurred on the investments during the year.

4.

Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017.

MARIN INC. Statement of Cash Flows

$

Adjustments to reconcile net income to

$

$