Common Stock $60,000 $0 Retained Earnings $136,000 $20,000 Total Liabilities and Stockholder Equity $386,000 $85,000 Income Statement Shiner Corporation Revenue $492,000 Operating $269,000 Expenses Depreciation $21,000 $290,000 Income before Income $202,000 Taxes Income Tax Expense $68,000 Net Income $134,000 ANSWER Statement of Cash Flows Cash Flow from Operating Activities Net Income $134,000 Adjustments to reconcile net income to net cash Accts Receivable decrease $10,000 Prepaid Expense increase ($6,000) Accts Payable Increase $35,000 Depreciation $21,000 $60,000 Net cash provided from Operating Activities $194,000 Investing Activities Land Purchase ($70,000) Building Purchase ($200,000) Equipment Purchase ($68,000) ($338,000) Financing Activities Dividend payment to ($18,000) shareholders Issuance of Bonds Payable $150,000 $132,000 Net Decrease in Cash ($12,000) Cash Jan 1, 1996 $49,000 Cash Dec 31, 1996 $37,000 Example 4: Capital budgeting problems are provided in separate sheet.
Common Stock $60,000 $0 Retained Earnings $136,000 $20,000 Total Liabilities and Stockholder Equity $386,000 $85,000 Income Statement Shiner Corporation Revenue $492,000 Operating Expenses $269,000 Depreciation $21,000 $290,000 Income before Income Taxes $202,000 Income Tax Expense $68,000 Net Income $134,000 ANSWER Statement of Cash Flows Cash Flow from Operating Activities Net Income $134,000 Adjustments to reconcile net income to net cash Accts Receivable decrease $10,000 Prepaid Expense increase ($6,000) Accts Payable Increase $35,000 Depreciation $21,000 $60,000 Net cash provided from Operating Activities $194,000 Investing Activities Land Purchase ($70,000) Building Purchase ($200,000) Equipment Purchase ($68,000) ($338,000) Financing Activities Dividend payment to shareholders ($18,000) Issuance of Bonds Payable $150,000 $132,000 Net Decrease in Cash ($12,000) Cash Jan 1, 1996 $49,000 Cash Dec 31, 1996 $37,000 Example 4: Capital budgeting problems are provided in separate sheet.
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