Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP.2017 and 2018 Balance SheetsAssets Liabilities and Owners’ Equity 2017 2018 2017 2018 Current assets Current liabilities Cash$34,985 $38,388 Accounts payable$37,662 $42,882 Accounts receivable 18,101 28,306 Notes payable 19,608 16,650 Inventory 3,790 42,872 Other 20,404 25,114 Total$56,876 $109,566 Total$77,674 $84,646 Long-term debt$118,000 $179,157 Owners’ equity Common stock and paid-in surplus$55,600 $55,600 Accumulated retained earnings 270,497 310,696 Fixed assets Net plant and equipment$464,895 $520,533 Total$326,097 $366,296 Total assets$521,771 $630,099 Total liabilities and owners’ equity$521,771 $630,099 SMOLIRA GOLF CORP.2018 Income Statement Sales $509,454 Cost of goods sold 361,428 Depreciation 45,213 Earnings before interest and taxes $102,813 Interest paid 20,283 Taxable income $82,530 Taxes (21%) 17,331 Net income $65,199 Dividends$25,000 Retained earnings 40,199 Prepare the 2018 statement of cash flows for Smolira Golf Corp. (Negative answers should be indicated by a minus sign.) Prepare the 2018 statement of cash flows for Smolira Golf Corp.answers should be indicated by a minus sign.)(NegativeSMOLIRA GOLF CORP.Statement of Cash FlowsFor 2018Cash, beginning of the year2$34,985Operating activitiesNet income65,199Add: Depreciation45,213Less: Increase in accounts receivableLess: Increase in inventoryAdd: Increase in accounts payableAdd: Increase in other current liabilitiesNet cash from operating activitiesInvestment activitiesFixed asset acquisitionNet cash from investment activitiesFinancing activitiesDividends paidDecrease in notes payableIncrease in long-term debtNet cash from financing activitiesNet increase in cashCash, end of year

There are three sections in cash flow statement, which are: Operating activities Investing…

Answered: Prepare the 2018 statement of cash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Some recent financial statements for Smolira Golf Corp. follow.

SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets
Assets		Liabilities and Owners’ Equity
	2017		2018		2017	2018
Current assets							Current liabilities
Cash	$	34,985		$	38,388		Accounts payable	$	37,662	$	42,882
Accounts receivable		18,101			28,306		Notes payable		19,608		16,650
Inventory		3,790			42,872		Other		20,404		25,114

Total	$	56,876		$	109,566		Total	$	77,674	$	84,646

							Long-term debt	$	118,000	$	179,157

							Owners’ equity
							Common stock and paid-in surplus	$	55,600	$	55,600
							Accumulated retained earnings		270,497		310,696
Fixed assets
Net plant and equipment	$	464,895		$	520,533		Total	$	326,097	$	366,296

Total assets	$	521,771		$	630,099		Total liabilities and owners’ equity	$	521,771	$	630,099

SMOLIRA GOLF CORP. 2018 Income Statement
Sales			$	509,454
Cost of goods sold				361,428
Depreciation				45,213

Earnings before interest and taxes			$	102,813
Interest paid				20,283

Taxable income			$	82,530
Taxes (21%)				17,331

Net income			$	65,199

Dividends	$	25,000
Retained earnings		40,199

Prepare the 2018 statement of cash flows for Smolira Golf Corp. (Negative answers should be indicated by a minus sign.)

Prepare the 2018 statement of cash flows for Smolira Golf Corp.
answers should be indicated by a minus sign.)
(Negative
SMOLIRA GOLF CORP.
Statement of Cash Flows
For 2018
Cash, beginning of the year
2$
34,985
Operating activities
Net income
65,199
Add: Depreciation
45,213
Less: Increase in accounts receivable
Less: Increase in inventory
Add: Increase in accounts payable
Add: Increase in other current liabilities
Net cash from operating activities
Investment activities
Fixed asset acquisition
Net cash from investment activities
Financing activities
Dividends paid
Decrease in notes payable
Increase in long-term debt
Net cash from financing activities
Net increase in cash
Cash, end of year

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