The following financial statements and information are available for Blythe Industries, Incorporated. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $180,200 $135,700 Accounts receivable 116,100 96,000 Inventory 209,700 193,200 Marketable securities (available for sale) 294,000 230,000 Equipment 731,000 551,000 Accumulated depreciation (349,000) (270,000) Land 90,000 135,000 Total assets $1,272,000 $1,070,900 Liabilities and equity Liabilities Accounts payable (inventory) $40,900 $74,500 Notes payable—Long-term 259,000 281,000 Bonds payable 225,000 112,000 Total liabilities 524,900 467,500 Stockholders’ equity Common stock, no par 270,300 225,000 Preferred stock, $50 par 122,000 112,000 Paid-in capital in excess of par—Preferred stock 40,100 30,100 Total paid-in capital 432,400 367,100 Retained earnings 349,700 281,300 Less: Treasury stock (35,000) (45,000) Total stockholders’ equity 747,100 603,400 Total liabilities and stockholders’ equity $1,272,000 $1,070,900 Income Statement For the Year Ended December 31, Year 2 Sales revenue $1,181,000 Cost of goods sold (862,200) Gross profit 318,800 Operating expenses Supplies expense $22,900 Salaries expense 103,000 Depreciation expense 101,000 Total operating expenses (226,900) Operating income 91,900 Nonoperating items Interest expense (18,000) Gain from the sale of marketable securities 29,000 Gain from the sale of land and equipment 12,000 Net income $114,900 Additional Information Sold land that cost $45,000 for $49,000. Sold equipment that cost $34,000 and had accumulated depreciation of $22,000 for $20,000. Purchased new equipment for $214,000. Sold marketable securities that were classified as available-for-sale and that cost $50,000 for $79,000. Purchased new marketable securities, classified as available-for-sale, for $114,000. Paid $22,000 on the principal of the long-term note. Paid off a $112,000 bond issue and issued new bonds for $225,000. Sold 100 shares of treasury stock at its cost. Issued some new common stock. Issued some new $50 par preferred stock. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.) Prepare a statement of cash flows using the direct method. (Cash outflows should be indicated with a minus sign.)

The following financial statements and information are available for Blythe Industries, Incorporated. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $180,200 $135,700 Accounts receivable 116,100 96,000 Inventory 209,700 193,200 Marketable securities (available for sale) 294,000 230,000 Equipment 731,000 551,000 Accumulated depreciation (349,000) (270,000) Land 90,000 135,000 Total assets $1,272,000 $1,070,900 Liabilities and equity Liabilities Accounts payable (inventory) $40,900 $74,500 Notes payable—Long-term 259,000 281,000 Bonds payable 225,000 112,000 Total liabilities 524,900 467,500 Stockholders’ equity Common stock, no par 270,300 225,000 Preferred stock, $50 par 122,000 112,000 Paid-in capital in excess of par—Preferred stock 40,100 30,100 Total paid-in capital 432,400 367,100 Retained earnings 349,700 281,300 Less: Treasury stock (35,000) (45,000) Total stockholders’ equity 747,100 603,400 Total liabilities and stockholders’ equity $1,272,000 $1,070,900 Income Statement For the Year Ended December 31, Year 2 Sales revenue $1,181,000 Cost of goods sold (862,200) Gross profit 318,800 Operating expenses Supplies expense $22,900 Salaries expense 103,000 Depreciation expense 101,000 Total operating expenses (226,900) Operating income 91,900 Nonoperating items Interest expense (18,000) Gain from the sale of marketable securities 29,000 Gain from the sale of land and equipment 12,000 Net income $114,900 Additional Information Sold land that cost $45,000 for $49,000. Sold equipment that cost $34,000 and had accumulated depreciation of $22,000 for $20,000. Purchased new equipment for $214,000. Sold marketable securities that were classified as available-for-sale and that cost $50,000 for $79,000. Purchased new marketable securities, classified as available-for-sale, for $114,000. Paid $22,000 on the principal of the long-term note. Paid off a $112,000 bond issue and issued new bonds for $225,000. Sold 100 shares of treasury stock at its cost. Issued some new common stock. Issued some new $50 par preferred stock. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.) Prepare a statement of cash flows using the direct method. (Cash outflows should be indicated with a minus sign.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 48E: Preparing Net Cash Flows from Operating Activities-Direct Method Colassard Industries has the...

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Question

The following financial statements and information are available for Blythe Industries, Incorporated.

	Year 2	Year 1
Balance Sheets
As of December 31
Assets
Cash	$180,200	$135,700
Accounts receivable	116,100	96,000
Inventory	209,700	193,200
Marketable securities (available for sale)	294,000	230,000
Equipment	731,000	551,000
Accumulated depreciation	(349,000)	(270,000)
Land	90,000	135,000
Total assets	$1,272,000	$1,070,900
Liabilities and equity
Liabilities
Accounts payable (inventory)	$40,900	$74,500
Notes payable—Long-term	259,000	281,000
Bonds payable	225,000	112,000
Total liabilities	524,900	467,500
Stockholders’ equity
Common stock, no par	270,300	225,000
Preferred stock, $50 par	122,000	112,000
Paid-in capital in excess of par—Preferred stock	40,100	30,100
Total paid-in capital	432,400	367,100
Retained earnings	349,700	281,300
Less: Treasury stock	(35,000)	(45,000)
Total stockholders’ equity	747,100	603,400
Total liabilities and stockholders’ equity	$1,272,000	$1,070,900

Income Statement
For the Year Ended December 31, Year 2
Sales revenue		$1,181,000
Cost of goods sold		(862,200)
Gross profit		318,800
Operating expenses
Supplies expense	$22,900
Salaries expense	103,000
Depreciation expense	101,000
Total operating expenses		(226,900)
Operating income		91,900
Nonoperating items
Interest expense		(18,000)
Gain from the sale of marketable securities		29,000
Gain from the sale of land and equipment		12,000
Net income		$114,900

Additional Information

Sold land that cost $45,000 for $49,000.
Sold equipment that cost $34,000 and had accumulated depreciation of $22,000 for $20,000.
Purchased new equipment for $214,000.
Sold marketable securities that were classified as available-for-sale and that cost $50,000 for $79,000.
Purchased new marketable securities, classified as available-for-sale, for $114,000.
Paid $22,000 on the principal of the long-term note.
Paid off a $112,000 bond issue and issued new bonds for $225,000.
Sold 100 shares of treasury stock at its cost.
Issued some new common stock.
Issued some new $50 par preferred stock.
Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.)

Prepare a statement of cash flows using the direct method. (Cash outflows should be indicated with a minus sign.)

Complete this question by entering your answers in the tabs below.
Statement of
Cash Flows
Prepare a statement of cash flows using the direct method. (Cash outflows should be indicated with a minus sign.)
BLYTHE INDUSTRIES, INCORPORATED
Statement of Cash Flows
For the Year Ended December 31, Year 2
activities:
Req A to C
Cash flows from operating
Cash Receipts from:
Total cash inflows
Cash payments for:
Total cash outflows
Cash flows from investing activities:
Cash flows from financing activities:
Ending cash balance
$
$
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0
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