Question: Cash flows: Analysts following the Tomkovick Golf Company were given the following balance sheet information for the years ended June 30, 2014 and June 30 2013:
|
2014
|
2013
|
|
Assets
|
|
|
|
Cash and marketable securities
|
$ 33,411
|
$ 16,566
|
|
Accounts receivable
|
260,205
|
318,768
|
|
Inventory
|
423,819
|
352,740
|
|
Other current assets
|
41,251
|
29,912
|
|
Total current assets
|
$ 758,686
|
$ 717,986
|
|
Plant and equipment
|
1,931,719
|
1,609,898
|
|
Less: Accumulated depreciation
|
(419,044)
|
(206,678)
|
|
Net plant and equipment
|
$1,512,675
|
$1,403,220
|
|
Goodwill and other assets
|
382,145
|
412,565
|
|
Total assets
|
$2,653,506
|
$2,533,771
|
|
Liabilities and Equity
|
2014
|
2013
|
|
Accounts payable and accruals
|
$ 378,236
|
$ 332,004
|
|
Notes payable
|
14,487
|
7,862
|
|
Accrued income taxes
|
21,125
|
16,815
|
|
Total current liabilities
|
$ 413,848
|
$ 356,681
|
|
Long-term debt
|
679,981
|
793,515
|
|
Total liabilities
|
$1,093,829
|
$1,150,196
|
|
Preferred stock
|
__
|
__
|
|
Common stock (10,000 shares)
|
10,000
|
10,000
|
|
Additional paid-in capital
|
975,465
|
975,465
|
|
Retained earnings
|
587,546
|
398,110
|
|
Less: Treasury stock
|
(13,334)
|
__
|
|
Total common equity
|
$1,559,677
|
$1,383,575
|
|
Total liabilities and equity
|
$2,653,506
|
$2,533,771
|
In addition, it was reported that the company had a net income of $ 3,155,848 and that depreciation expenses were equal to $212,366 during 2014. Assume amortization expense was $0 in 2014.
a. Construct a 2014 cash flow statement for this firm.
b. What is the net cash provided by operating activities?
c. What is the net cash provided/used by financing activities? Note, don't forget to construct a statement of retained earnings to determine if the company paid a dividend?
d. Does the sum of the net cash provided by operating, investing and financing activities equal $16,845?