Statement of Cash Flows—Direct Method applied to PR 16-1AThe comparative balance sheet of Navaria...

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Accounting

Statement of Cash Flows—Direct Method applied to PR 16-1A
The comparative balance sheet of Navaria Inc. for December 31,20Y3 and 20Y2, is as follows:
     Dec. 31,20Y3      Dec. 31,20Y2
Assets
Cash $ 227,410 $ 213,550
Accounts receivable (net) 82,990 76,140
Inventories 233,930 224,930
Investments 0 87,520
Land 119,900 0
Equipment 255,650 201,300
Accumulated depreciation-equipment (60,800) (54,300)
  Total assets $859,080 $749,140
Liabilities and Stockholders'Equity
Accounts payable $ 154,960 $ 147,580
Accrued expenses payable 15,580 19,480
Dividends payable 8,400 6,700
Common stock, $1 par 45,800 35,210
Paid-in capital: Excess of issue price over par-commonstock 174,200 101,880
Retained earnings 460,140 438,290
  Total liabilities and stockholders’ equity $859,080 $749,140
The income statement for the year ended December 31, 20Y3, is asfollows:
Sales $1,468,590
Cost of merchandise sold 903,180
Gross profit $ 565,410
Operating expenses:
Depreciation expense $ 6,500
Other operating expenses 478,760
   Total operating expenses 485,260
Operating income $ 80,150
Other income:
Gain on sale of investments 14,600
Income before income tax $ 94,750
Income tax expense 37,900
Net income $ 56,850
Additional data obtained from an examination of the accounts inthe ledger for 20Y3 are as follows:
The investments were sold for $102,120 cash.
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $35,000 debit to Retained Earnings for cashdividends declared.
Required:
Prepare a statement of cash flows, using the direct method ofpresenting cash flows from operating activities. Use the minus signto indicate cash outflows, cash payments, decreases in cash, or anynegative adjustments.
Navaria Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y3
Cash flows from operating activities:
Cash received from customers $
Cash payments for merchandise
Cash payments for operating expenses
Cash payments for income taxes
Net cash flow from operating activities $
Cash flows from (used for) investing activities:
$
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
$
Net cash flow from financing activities
$
Cash at the beginning of the year
Cash at the end of the year $

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In: AccountingStatement of Cash Flows—Direct Method applied to PR 16-1AThe comparative balance sheet of Navaria Inc....Statement of Cash Flows—Direct Method applied to PR 16-1AThe comparative balance sheet of Navaria Inc. for December 31,20Y3 and 20Y2, is as follows: Dec. 31,20Y3 Dec. 31,20Y2AssetsCash$ 227,410$ 213,550Accounts receivable (net)82,99076,140Inventories233,930224,930Investments087,520Land119,9000Equipment255,650201,300Accumulated depreciation-equipment(60,800)(54,300) Total assets$859,080$749,140Liabilities and Stockholders'EquityAccounts payable$ 154,960$ 147,580Accrued expenses payable15,58019,480Dividends payable8,4006,700Common stock, $1 par45,80035,210Paid-in capital: Excess of issue price over par-commonstock174,200101,880Retained earnings460,140438,290 Total liabilities and stockholders’ equity$859,080$749,140The income statement for the year ended December 31, 20Y3, is asfollows:Sales$1,468,590Cost of merchandise sold903,180Gross profit$ 565,410Operating expenses:Depreciation expense$ 6,500Other operating expenses478,760 Total operating expenses485,260Operating income$ 80,150Other income:Gain on sale of investments14,600Income before income tax$ 94,750Income tax expense37,900Net income$ 56,850Additional data obtained from an examination of the accounts inthe ledger for 20Y3 are as follows:The investments were sold for $102,120 cash.Equipment and land were acquired for cash.There were no disposals of equipment during the year.The common stock was issued for cash.There was a $35,000 debit to Retained Earnings for cashdividends declared.Required:Prepare a statement of cash flows, using the direct method ofpresenting cash flows from operating activities. Use the minus signto indicate cash outflows, cash payments, decreases in cash, or anynegative adjustments.Navaria Inc.Statement of Cash FlowsFor the Year Ended December 31, 20Y3Cash flows from operating activities:Cash received from customers$Cash payments for merchandiseCash payments for operating expensesCash payments for income taxesNet cash flow from operating activities$Cash flows from (used for) investing activities:$Net cash flow used for investing activitiesCash flows from (used for) financing activities:$Net cash flow from financing activities$Cash at the beginning of the yearCash at the end of the year$

	Dec. 31,20Y3	Dec. 31,20Y2
Assets
Cash	$ 227,410	$ 213,550
Accounts receivable (net)	82,990	76,140
Inventories	233,930	224,930
Investments	0	87,520
Land	119,900	0
Equipment	255,650	201,300
Accumulated depreciation-equipment	(60,800)	(54,300)
Total assets	$859,080	$749,140
Liabilities and Stockholders'Equity
Accounts payable	$ 154,960	$ 147,580
Accrued expenses payable	15,580	19,480
Dividends payable	8,400	6,700
Common stock, $1 par	45,800	35,210
Paid-in capital: Excess of issue price over par-commonstock	174,200	101,880
Retained earnings	460,140	438,290
Total liabilities and stockholders’ equity	$859,080	$749,140

Sales		$1,468,590
Cost of merchandise sold		903,180
Gross profit		$ 565,410
Operating expenses:
Depreciation expense	$ 6,500
Other operating expenses	478,760
Total operating expenses		485,260
Operating income		$ 80,150
Other income:
Gain on sale of investments		14,600
Income before income tax		$ 94,750
Income tax expense		37,900
Net income		$ 56,850

Navaria Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y3
Cash flows from operating activities:
Cash received from customers	$
Cash payments for merchandise
Cash payments for operating expenses
Cash payments for income taxes
Net cash flow from operating activities		$
Cash flows from (used for) investing activities:
	$


Net cash flow used for investing activities
Cash flows from (used for) financing activities:
	$

Net cash flow from financing activities
		$
Cash at the beginning of the year
Cash at the end of the year		$