Solution problem 34A Chapter 16 Accounting.pdf - P16-34A Requirement 1 ROLLING HILLS INC Statement of Cash Flows Year Ended Cash Flows from Operating

Solution problem 34A Chapter 16 Accounting.pdf - P16-34A...

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P16-34A Requirement 1 ROLLING HILLS, INC. Statement of Cash Flows Year Ended December 31, 2017 Cash Flows from Operating Activities: Net Income $ 97,800 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense—Plant Assets $ 14,400 Increase in Accounts Receivable (1,200) Decrease in Merchandise Inventory 11,900 Increase in Accounts Payable 4,900 Decrease in Accrued Liabilities (2,100) 27,900 Net Cash Provided by Operating Activities 125,700 Cash Flows from Investing Activities: Acquisition of Equipment for Cash $ (28,600) Net Cash Used for Investing Activities (28,600) Cash Flows from Financing Activities: Cash Receipt from Issuance of Common Stock $ 23,900 Cash Payment of Notes Payable (46,600) Cash Payment of Dividends (63,900) Net Cash Used for Financing Activities (86,600) Net Increase (Decrease) in Cash 10,500 Cash Balance, December 31, 2014 15,900 Cash Balance, December 31, 2015 $ 26,400
Non-cash Investing and Financing Activities: Acquisition of Land by issuing Long-term Notes Payable $ 23,600 Total Non-cash Investing and Financing Activities $ 23,600
P16-34A Requirement 1, cont. Requirement 2 I will be able to evaluate an investment with this information because I can see the cash receipts and cash payments for a specific period. This information can help me predict future cash flows, Plant Assets 12/31/2014 107,640 Acquisitions 28,600 11,560 Disposed of 12/31/2015 124,680 Accumulated Depreciation—Plant Assets 17,940 12/31/2014 14,400 Depreciation Expense Disposed of 11,560 20,780 12/31/2015 Retained Earnings 6,600 12/31/2014 97,800 Net Income Dividend 63,900 40,500 12/31/2015 Notes Payable 101,000 12/31/2014 23,600 Issuance Payment 46,600 78,000 12/31/2015

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