EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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![Statement of financial position balances as
at 31 December 20X8 and 20 x 9 are
provided below for Laurel Inc. Laurel Inc.
additional information: Net earnings for
20x9 were $714,000. Equipment with an
original cost of $404,000 and a NBV of $
152,000 was sold for $152,000 during the
year. Long-term investments were sold for
$137,000 during the year. Short-term
investments acquired are treasury bills
with an original term of three months.
Required: Prepare an SCF for 20x 9 using
the indirect method. Note any
assumptions made during your SCF
preparation. (Deductible amounts and
Cash outflows should be indicated with
minus sign.) Laurel Inc. Statement of Cash
Flows For the year ended 31 December 20
X9 \table[[\table[[Operating activities:], [
Net earninas]]],[Net earnings,
Øs, 714,000,], [Adjustments for non-cash
items:...]. [Depreciation expense,
0
254,000,]. [Amortization of patent,var
?
€, 17,000,], [Gain on sale of long-term
investment,diamond,(35,000), ], [Change in
cash,..]. [,950,000,], [Changes in net
working capital:,C,.]. [Increase in accounts
receivable,0,207,000x,], [Increase in
inventories,6, 93, 000ax, ], [Increase in
accounts payable,6), 17,000x, ], [Change in
cash,y, 667,000,], [Net cash from
operations,.,10], [Investing activities:,
E, 3518A8,], [Purchase of equipment,
0,404,000 x,], [Proceeds on sale of
equipment, 6, 152, 000,], [Proceeds on sale
of long-term investment,o, 137,0000,].[
Change in cash,,115,000,], [Net cash for
investing...,808,000],[Financing activities:...
1. [Proceeds on sale of long-term
investment,x, 116,000x, ], [Proceeds on
issuance of shares,, 87,000px, ], [Dividends
paid,0, 104,000x,]] \table[[Cla,, 500,], [Net
cash for investing..,808, 000], [Financing
activities:], [Proceeds on sale of long-term
investment,x, 116,000x,]. [Proceeds on
issuance of shares,vare, 87,000x, ], [
Dividends paid,vare, 104, 000 x,]. [Change
in cash, 99,000,], [Net cash from
financing.., 406, 000], [Change in cash,
0,,651,000x](https://content.bartleby.com/qna-images/question/67f7a6ca-f9fc-4aae-9eea-9a2b51983e52/a2760ae2-72b9-47e0-b6e2-7ba5f07934cb/0mjvf9h_processed.jpeg)
Transcribed Image Text:Statement of financial position balances as
at 31 December 20X8 and 20 x 9 are
provided below for Laurel Inc. Laurel Inc.
additional information: Net earnings for
20x9 were $714,000. Equipment with an
original cost of $404,000 and a NBV of $
152,000 was sold for $152,000 during the
year. Long-term investments were sold for
$137,000 during the year. Short-term
investments acquired are treasury bills
with an original term of three months.
Required: Prepare an SCF for 20x 9 using
the indirect method. Note any
assumptions made during your SCF
preparation. (Deductible amounts and
Cash outflows should be indicated with
minus sign.) Laurel Inc. Statement of Cash
Flows For the year ended 31 December 20
X9 \table[[\table[[Operating activities:], [
Net earninas]]],[Net earnings,
Øs, 714,000,], [Adjustments for non-cash
items:...]. [Depreciation expense,
0
254,000,]. [Amortization of patent,var
?
€, 17,000,], [Gain on sale of long-term
investment,diamond,(35,000), ], [Change in
cash,..]. [,950,000,], [Changes in net
working capital:,C,.]. [Increase in accounts
receivable,0,207,000x,], [Increase in
inventories,6, 93, 000ax, ], [Increase in
accounts payable,6), 17,000x, ], [Change in
cash,y, 667,000,], [Net cash from
operations,.,10], [Investing activities:,
E, 3518A8,], [Purchase of equipment,
0,404,000 x,], [Proceeds on sale of
equipment, 6, 152, 000,], [Proceeds on sale
of long-term investment,o, 137,0000,].[
Change in cash,,115,000,], [Net cash for
investing...,808,000],[Financing activities:...
1. [Proceeds on sale of long-term
investment,x, 116,000x, ], [Proceeds on
issuance of shares,, 87,000px, ], [Dividends
paid,0, 104,000x,]] \table[[Cla,, 500,], [Net
cash for investing..,808, 000], [Financing
activities:], [Proceeds on sale of long-term
investment,x, 116,000x,]. [Proceeds on
issuance of shares,vare, 87,000x, ], [
Dividends paid,vare, 104, 000 x,]. [Change
in cash, 99,000,], [Net cash from
financing.., 406, 000], [Change in cash,
0,,651,000x
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