Reference no: EM132656243
Question - Diane's balance sheets as of December 31, 2018 and 2019 are presented below:
|
2018
|
2019
|
Cash
|
$190,000
|
$246,000
|
Accounts receivable
|
125,000
|
63,000
|
Prepaid expenses
|
50,000
|
27,000
|
Property, plant, and equipment - at cost
|
450,000
|
698,000
|
Accumulated depreciation
|
(110,000)
|
(154,000)
|
TOTAL ASSETS
|
$705,000
|
$880,000
|
Accrued expenses payable
|
$120,000
|
$100,000
|
Unearned revenues
|
45,000
|
10,000
|
Dividends payable
|
0
|
15,000
|
Long-term debt
|
200,000
|
150,000
|
Common stock
|
50,000
|
60,000
|
Additional paid-in-capital
|
250,000
|
380,000
|
Retained earnings
|
40,000
|
165,000
|
TOTAL LIABILITIES & SE
|
$705,000
|
$880,000
|
SELECTED OTHER INFORMATION:
1. During 2019, Diane reported net income of $180,000.
2. During 2019, Diane both borrowed on a long-term basis and paid back some long-term debt. During 2019, Diane paid back $125,000.
3. During 2019. Diane both bought and sold some property, plant, and equipment (PP&E). A machine Diane sold during 2019 originally cost her $65,000. Diane sold the PP&E for $40,000 and reported a gain on the sale of $5,000.
4. During 2019, Diane issued additional common stock.
5. During 2019, Diane declared four quarterly dividends. 2019 was the first year in which Diane declared dividends.
6. During 2019, Diane did NOT enter into any non-cash investing or financing activities.
Required - Prepare Diane's statement of cash flows (in good form) for the year ended December 31, 2019. Diane uses the indirect method. Make sure that the three sections of your Statement of Cash Flows (operating, investing, and financing) explain the $56,000 increase in Diane's cash balance.