Reference no: EM132319011
Question
The cookie co prepared these balance sheets at december 31 2018 and 2017.
12/31/18 12/31/17
Cash 77,375 (22,955)
Marketable securities 15,500 85,000
Accounts Receivable 80,000 68,250
Inventory 165,000 145,000
Prepaid insurance 1,500 2,000
land building equipment 1,250,000 1,125,000
accumulated depreciation (610,000) (572,000)
Total Assets 979,375 830,295
Accounts payable 76,340 102,760
Salaries Payable 20,000 24,500
Notes Payable 25,000 75,000
Bonds Payable 200,000 0
Common Stock 300,000 300,000
Retained Earnings 358,035 328,035
Total Liabilities and shareholders equity 979,375 830,295
Additional Cash Flow for the year end of December 31, 2018
1.) Sold available-for-sale securities costing $69,500 for $74,000. (
2.) Equipment costing $20,000, with a book value of $5,000, was sold for $6,000.
(3.) Issued 6% bonds payable at par.
(4.) Repaid a portion of a long term bank loan.
(5.) Purchased new equipment for $145,000 cash.
(6.) Paid cash dividends of $20,000.
(7.) Net income for 2018 was $50,000.
(8.) Smirnoff prepares its cash flows statement under the indirect method.
_____ 1. Net cash flows from operating activities on the cash flows statement for 2018 are?
A) Negative $17,670. B) Positive $35,330. C) Positive $39,830. D) Negative $70,670.
_____ 2. Net cash flows from investing activities on the cash flows statement for 2018 are?
A) Negative $225,000. B) Negative $65,000. C) Negative $70,500. D) Negative $145,000.
_____ 3. Net cash flows from financing activities on the cash flows statement for 2018 are?
A) Negative $130,000. B) Positive $150,000. C) Positive $130,000. D) Negative $70,000.