Cash Flow Statement Exercise 17 – 7 (In-DIRECT)

Exercise  17 – 7  (In-DIRECT)
VicWest Inc Cash Flow Statement For Year Ended June 30, 2014 Cash flows from operating activities: Net Income  $    104,112 Adj. Depreciation Expense 70,320 Increase in A/R (21,600) Decrease in Inventory 36,000 Increase in Prepaid expenses (240) Decrease in A/P (7,200) Decrease in Wages Payable (10,800) Decrease In Tax Payable (1,440) Gain on Sale of Equipment (2,400) Net cash inflow from operating activities  $   166,752 Cash flows from investing activities: Cash received from sale of Old Equipment 12,000 Cash paid for new Equipment (70,320) Net Cash outflow from Investment activities (58,320) Cash flows from financing activities: Cash received from issuance of Com. Share 60,000 Cash paid to retire L.T. Note Payable (36,000) Cash paid for Dividends (83,472) Net cash outflow from financing activities (59,472) Net increase in cash 48,960 Cash balance at beginning of July 1, 2013 42,000 Cash balance at end of June 30, 2014  $      90,960 Calculations: Equipment sold cost beginning balance + new purhcase - Ending balance = equipment sold =144,000 +73320 - 156000 = ? 58320 Accumulated Depreciation sold equipment Beg. Accum Dep + Depreciation expense - Ending Acc. Dep = Acc Dep Eq Sold =12000 + 70320 - 33600 = 48720 Entry of Equipment Sold Cash 12,000 Acc. Dep. Equpment] 48,720    Gain on sale of equipment 2,400    Equipment 58,320 Retained Earning  Beginning + Net Income - Ending = cash dividend = 8880 + 104112 - 29502 = 83472