Selected financial statement information and additional data forRonis Co. is presented below. Use this...

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Accounting

Selected financial statement information and additional data forRonis Co. is presented below. Use this information to answer thenext (3) questions concerning in preparing a statement of cashflows for the year ending December 31, 2017.

2016                                             2017

Cash...........................................................      $60,000                                   $122,000

Accounts receivable(net)................................        67,000                                     100,000

Inventory....................................................      210,000                                     198,000

Land...........................................................      350,000                                     300,000

Equipment...................................................      385,000                                     405,000

Accumulateddepreciation...............................    (280,000)                                  (260,000)

TOTAL............................................   $792,000                                   $865,000

Accountspayable..........................................        42,000                                        40,000

Bonds payable -long-term...............................      225,000                                     260,000

Commonstock..............................................      250,000                                     250,000

Retainedearnings..........................................      275,000                                     315,000

TOTAL............................................ $ 792,000                                   $865,000

Additional data for 2017:

1.     Net incomewas $70,000.

2.    Depreciation was recorded for 2017.

3.     Land wassold for $65,000 cash, and no land was purchased this year.

4.     Equipmentwith an original cost of $100,000 and book value of $55,000 wassold for a loss of $5,000.

4.     Dividendswere declared and paid.

5.     Equipmentwas purchased for cash.

6.     Along-term bond was issued for cash.

QUESTION:

1) What is the Cash flow fromoperations?

2) What is the cash flow frominvesting?

3) What is the cash flow fromfinancing?

please show work!

Answer & Explanation Solved by verified expert
4.3 Ratings (734 Votes)
Ronis Co CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 Cash flow from operating activity Net Income 70000 Adjustment to reconcile net income to net cash flow from operating activity Depreciation 25000 loss on    See Answer
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In: AccountingSelected financial statement information and additional data forRonis Co. is presented below. Use this information...Selected financial statement information and additional data forRonis Co. is presented below. Use this information to answer thenext (3) questions concerning in preparing a statement of cashflows for the year ending December 31, 2017.2016                                             2017Cash...........................................................      $60,000                                   $122,000Accounts receivable(net)................................        67,000                                     100,000Inventory....................................................      210,000                                     198,000Land...........................................................      350,000                                     300,000Equipment...................................................      385,000                                     405,000Accumulateddepreciation...............................    (280,000)                                  (260,000)TOTAL............................................   $792,000                                   $865,000Accountspayable..........................................        42,000                                        40,000Bonds payable -long-term...............................      225,000                                     260,000Commonstock..............................................      250,000                                     250,000Retainedearnings..........................................      275,000                                     315,000TOTAL............................................ $ 792,000                                   $865,000Additional data for 2017:1.     Net incomewas $70,000.2.    Depreciation was recorded for 2017.3.     Land wassold for $65,000 cash, and no land was purchased this year.4.     Equipmentwith an original cost of $100,000 and book value of $55,000 wassold for a loss of $5,000.4.     Dividendswere declared and paid.5.     Equipmentwas purchased for cash.6.     Along-term bond was issued for cash.QUESTION:1) What is the Cash flow fromoperations?2) What is the cash flow frominvesting?3) What is the cash flow fromfinancing?please show work!

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