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Statement of Cash Flows

Lan Services Inc. provided a statement of cash flows for the year ended December 31, 2020. It showed operating activities generated $145,000 in net income, a $10,000 decrease in accounts receivable, a $5,000 increase in inventory, a $4,000 increase in prepaid expenses, a $16,000 increase in accounts payable, a $2,000 decrease in income taxes payable, and $15,000 in depreciation expenses. Investing activities included $120,000 for purchasing a building, $25,000 for purchasing equipment, and $4,000 from selling equipment. Financing activities included $20,000 from issuing common stock and $29,000 for paying

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310 views2 pages

Statement of Cash Flows

Lan Services Inc. provided a statement of cash flows for the year ended December 31, 2020. It showed operating activities generated $145,000 in net income, a $10,000 decrease in accounts receivable, a $5,000 increase in inventory, a $4,000 increase in prepaid expenses, a $16,000 increase in accounts payable, a $2,000 decrease in income taxes payable, and $15,000 in depreciation expenses. Investing activities included $120,000 for purchasing a building, $25,000 for purchasing equipment, and $4,000 from selling equipment. Financing activities included $20,000 from issuing common stock and $29,000 for paying

Uploaded by

Mae Marino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Lan Services Incorporated

Worksheet

Statement of Cash Flows for the Year Ended December 21, 2020
Reconciling Items
Balance Debit Credit Balance
Balance Sheet Accounts 12/31/19 12/31/20
Debits
Cash 33,000 22,000 55,000
Accounts Receivable 30,000 10,000 20,000
Inventory 10,000 5,000 15,000
Prepaid Expenses 1,000 4,000 5,000
Land 20,000 110,000 130,000
Buildings 40,000 120,000 160,000
Equipment 10,000 25,000 8,000 27,000
Total 144,000 412,000
Credits
Accounts Payable 12,000 16,000 28,000
Income Tax Payable 8,000 2,000 6,000
Bonds Payable 20,000 110,000 130,000
Accumulated Depreciation - Buildings 5,000 6,000 11,000
Accumulated Depreciation - Equipment 1,000 2,000 3,000
Common Stock 50,000 20,000 70,000
Retained Earnings 48,000 29,000 145,000 164,000
Total 144,000 412,000

Statement of Cash Flows


Operating Activities
Net Income 145,000
Decrease in accounts receivable 10,000
Increase in inventory 5,000
Increase in prepaid expenses 4,000
Increase in accounts payable 16,000
Decrease in income taxes payable 2,000
Depreciation expense - Building 6,000
Depreciation expense - Equipment 3,000
Loss on disposal of plant asset 3,000
Investing activities
Purchase of building 120,000
Purchase of equipment 25,000
Sale of equipment 4,000
Financing activities
Issuance of common stock 20,000
Payment of dividends 29,000
Totals 524,000 502,000
Increase in cash 22,000
Totals 524,000 524,000

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