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Sinjh Inc. 2017 Cash Flow Statement Analysis

Sinjh Inc. reported an increase in cash from $48,400 in 2016 to $90,800 in 2017. During the year, Sinjh purchased $85,000 of new plant assets for cash, sold old plant assets for $1,500 cash, paid off bonds for $110,000 cash, issued additional common stock for cash, paid a cash dividend of $40,350, and made additional investments for cash. The statement of cash flows will show the changes in cash from operating, investing, and financing activities during the year.

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89 views1 page

Sinjh Inc. 2017 Cash Flow Statement Analysis

Sinjh Inc. reported an increase in cash from $48,400 in 2016 to $90,800 in 2017. During the year, Sinjh purchased $85,000 of new plant assets for cash, sold old plant assets for $1,500 cash, paid off bonds for $110,000 cash, issued additional common stock for cash, paid a cash dividend of $40,350, and made additional investments for cash. The statement of cash flows will show the changes in cash from operating, investing, and financing activities during the year.

Uploaded by

NafisaRafa
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

Problem 1: Cash Flow Statement

Condensed financial data of Sinjh Inc. follow:


SINJH INC.
Comparative Balance Sheets
December 31
Assets 2017 2016
Cash $ 90,800 $ 48,400
Accounts Receivable 92,800 33,000
Inventory 112,500 102,850
Prepaid Expenses 28,400 26,000
Investments 138,000 114,000
Plant Assets 270,000 242,500
Accumulated Depreciation (50,000) (52,000)
Total $ 682,500 $ 514,750

Liabilities and Owners' Equity


Accounts Payable $ 112,000 $ 67,300
Accrued Expense Payable 16,500 17,000
Bonds Payable 110,000 150,000
Common Stock 220,000 175,000
Retained Earnings 224,000 105,450
Total $ 682,500 $ 514,750

SINJH INC.
Income Statement
For the Year Ended December 31, 2017
Sales: $ 392,780
Less:
Cost of Goods Sold $ 135,460
Operating Expenses, excluding depreciation 12,410
Depreciation Expense 46,500
Income Taxes 27,280
Interest Expense 4,730
Loss on Sale of Plant Assets 7,500 233,880
Net Income $ 158,900
Additional information:
1. New plant assets costing $85,000 were purchased for cash during the year.
2. Old plant were sold for $1,500 cash.
3. Bonds matured and were paid off at face value for cash.
4. Additional common stock was issued in cash at par.
5. A cash dividend of $40,350 was declared and paid during the year.
6. Additional investment was made in cash at par.
Requirement: Prepare a statement of cash for the year ended on December 31, 2017.

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