Please let me know which part of the cash flow calculations or cashflow statement setup/structure that I am doing wrong. The cashflow change should be $86,000(from the balance sheet) but I got a total of -$159,000. Income statement Assets 20X1 20X0 Difference 20X1 20X0 Difference Net credit sales Current assets $7,200,000 $6,500,000 $700,000 Cash Cost of goods sold $450,000.00 $364,000.00 $86,000 4,320,000 3,900,000 $420,000 Accounts receivable—net Gross profit 692,000 625,000 $67,000 2,880,000 2,600,000 $280,000 Inventory Operating expenses (including income taxes) 723,000 610,000 $113,000 2,376,000 2,145,000 $231,000 Prepaid expenses Net income 50,000 70,000 ($20,000) $504,000 $455,000 $49,000 Total current assets 1,915,000 1,669,000 $246,000 Long-term investments Cash flow 150,000 20,000 $130,000 Net income $49,000 Property, plant, and equipment Depreciation $25,000 1,622,000 815,000 $807,000 Increase in Inventory ($113,000) Less: Accumulated depreciation Increase in accts receivable ($67,000) -100,000 -75,000 ($25,000) current liabilities $4,000 1,522,000 740,000 $782,000 Net Cash from Operating ($102,000) Total assets $3,587,000 $2,429,000 $1,158,000 Cash from Investing Liabilities and Stockholders’ Equity Property, plant, and equipment $807,000 Current liabilities Net Cash from Investing ($807,000) Accounts payable Cash from Financing $399,000 $451,000 ($52,000) Notes payable—due 20X4 $750,000 Accrued expenses Net increase/decrease in cash ($159,000) 185,000 179,000 $6,000 Dividends payable Cash at 20x1 $450,000.00 50,000 0 $50,000 Cash at 20x0 $364,000.00 Total current liabilities Net Increase in cash $86,000.00 634,000 630,000 $4,000 Notes payable—due 20X4 750,000 $750,000 Stockholders’ Equity Common stock 1,400,000 1,300,000 $100,000 Retained earnings 803,000 499,000 $304,000 Total stockholders’ Equity $2,203,000.00 $1,799,000.00 $404,000 Total liabilities and stockholders’ equity $3,587,000 $2,429,000 $1,158,000

Please let me know which part of the cash flow calculations or cashflow statement setup/structure that I am doing wrong. The cashflow change should be $86,000(from the balance sheet) but I got a total of -$159,000. Income statement Assets 20X1 20X0 Difference 20X1 20X0 Difference Net credit sales Current assets $7,200,000 $6,500,000 $700,000 Cash Cost of goods sold $450,000.00 $364,000.00 $86,000 4,320,000 3,900,000 $420,000 Accounts receivable—net Gross profit 692,000 625,000 $67,000 2,880,000 2,600,000 $280,000 Inventory Operating expenses (including income taxes) 723,000 610,000 $113,000 2,376,000 2,145,000 $231,000 Prepaid expenses Net income 50,000 70,000 ($20,000) $504,000 $455,000 $49,000 Total current assets 1,915,000 1,669,000 $246,000 Long-term investments Cash flow 150,000 20,000 $130,000 Net income $49,000 Property, plant, and equipment Depreciation $25,000 1,622,000 815,000 $807,000 Increase in Inventory ($113,000) Less: Accumulated depreciation Increase in accts receivable ($67,000) -100,000 -75,000 ($25,000) current liabilities $4,000 1,522,000 740,000 $782,000 Net Cash from Operating ($102,000) Total assets $3,587,000 $2,429,000 $1,158,000 Cash from Investing Liabilities and Stockholders’ Equity Property, plant, and equipment $807,000 Current liabilities Net Cash from Investing ($807,000) Accounts payable Cash from Financing $399,000 $451,000 ($52,000) Notes payable—due 20X4 $750,000 Accrued expenses Net increase/decrease in cash ($159,000) 185,000 179,000 $6,000 Dividends payable Cash at 20x1 $450,000.00 50,000 0 $50,000 Cash at 20x0 $364,000.00 Total current liabilities Net Increase in cash $86,000.00 634,000 630,000 $4,000 Notes payable—due 20X4 750,000 $750,000 Stockholders’ Equity Common stock 1,400,000 1,300,000 $100,000 Retained earnings 803,000 499,000 $304,000 Total stockholders’ Equity $2,203,000.00 $1,799,000.00 $404,000 Total liabilities and stockholders’ equity $3,587,000 $2,429,000 $1,158,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question



					Income statement
Assets			20X1	20X0	Difference
20X1	20X0	Difference			Net credit sales
Current assets					$7,200,000	$6,500,000	$700,000
Cash					Cost of goods sold
$450,000.00	$364,000.00	$86,000			4,320,000	3,900,000	$420,000
Accounts receivable—net					Gross profit
692,000	625,000	$67,000			2,880,000	2,600,000	$280,000
Inventory					Operating expenses (including income taxes)
723,000	610,000	$113,000			2,376,000	2,145,000	$231,000
Prepaid expenses					Net income
50,000	70,000	($20,000)			$504,000	$455,000	$49,000
Total current assets
1,915,000	1,669,000	$246,000
Long-term investments					Cash flow
150,000	20,000	$130,000			Net income	$49,000
Property, plant, and equipment					Depreciation	$25,000
1,622,000	815,000	$807,000			Increase in Inventory	($113,000)
Less: Accumulated depreciation					Increase in accts receivable	($67,000)
-100,000	-75,000	($25,000)			current liabilities	$4,000
1,522,000	740,000	$782,000			Net Cash from Operating	($102,000)
Total assets
$3,587,000	$2,429,000	$1,158,000			Cash from Investing
Liabilities and Stockholders’ Equity					Property, plant, and equipment	$807,000
Current liabilities					Net Cash from Investing	($807,000)
Accounts payable					Cash from Financing
$399,000	$451,000	($52,000)			Notes payable—due 20X4	$750,000
Accrued expenses					Net increase/decrease in cash	($159,000)
185,000	179,000	$6,000
Dividends payable					Cash at 20x1	$450,000.00
50,000	0	$50,000			Cash at 20x0	$364,000.00
Total current liabilities					Net Increase in cash	$86,000.00
634,000	630,000	$4,000
Notes payable—due 20X4
750,000		$750,000
Stockholders’ Equity
Common stock
1,400,000	1,300,000	$100,000
Retained earnings
803,000	499,000	$304,000
Total stockholders’ Equity
$2,203,000.00	$1,799,000.00	$404,000
Total liabilities and stockholders’ equity
$3,587,000	$2,429,000	$1,158,000

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