The net income of Smart Cookies Ltd. for the year ended 2016 was $5,000 and the applicable corporate tax rate was 30%. The company had 32,000 shares outstanding and paid a DPS of $0.25 per share in cash dividends to its ordinary shareholders. The depreciation expense amounted $3,000. The firm’s balance sheets for financial years 2015 and 2016 are presented below. Construct the statement of cash flows (2016) for the firm using the information provided above showing changes in the Cash account from Year 2015 to Year 2016. 2016 2015 Assets Cash 41,000 13,000 Accounts Receivable 26,000 42,000 Inventory 34,000 49,000 Gross Fixed Assets 287,000 258,000 Total Assets 364,000 363,000 Liabilities and Equity Accounts Payable 15,000 7,000 Notes Payable 9,000 14,000 Accruals 10,000 6,000 Long-Term Debt 47,000 28,000 Common Stock 52,000 52,000 Retained Earnings 231,000 256,000 Total Liabilities and Equity 364,000 363,000
- The net income of Smart Cookies Ltd. for the year ended 2016 was $5,000 and the applicable corporate tax rate was 30%.
- The company had 32,000 shares outstanding and paid a DPS of $0.25 per share in cash dividends to its ordinary shareholders.
- The
depreciation expense amounted $3,000. - The firm’s
balance sheets for financial years 2015 and 2016 are presented below. - Construct the statement of cash flows (2016) for the firm using the information provided above showing changes in the Cash account from Year 2015 to Year 2016.
2016 2015
Assets
Cash 41,000 13,000
Accounts Receivable 26,000 42,000
Inventory 34,000 49,000
Gross Fixed Assets 287,000 258,000
Total Assets 364,000 363,000
Liabilities and Equity
Accounts Payable 15,000 7,000
Notes Payable 9,000 14,000
Accruals 10,000 6,000
Long-Term Debt 47,000 28,000
Common Stock 52,000 52,000
Total Liabilities and Equity 364,000 363,000
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