Balance sheet information for a resort hotel reflects the changes to current accounts that occurred over the annual operating period ended December 31, 0008. Cash account balance at December 31, 0007, was $12,020 and the ending cash balance at December 31, 0008, is $30,840. Current Asset Accounts Change Amount Cash Increased $18,820 Credit card receivables Increased 680 Accounts receivable Increased 1,500 Inventories Increased 1,200 Prepaid expenses Decreased 800 Current Liability Accounts Change Amount Accounts payable Decreased $ 2,100 Accrued payroll payable Increased 2,400 Taxes payable Decreased 900 Additional information applying to the current year ending December 31, 0008: a. Net income for Year 0008 was $112,400. b. Depreciation expense for Year 2008 was $120,000. c. Furnishings with a book value of $5,400 were sold for $8,600. d. Equipment with a book value of $2,800 was sold for $2,000. e. New furnishings were purchased for $16,800. f. New equipment was purchased for $24,200. g. A total of $54,800 was paid to reduce long-term debt. h. Cash dividends of $122,400 were declared and paid. Using the information provided, complete an SCF, in good form, using the indirect method.

Net Income                   112,400

Depreciation expense 120,000

Gain at disposal (furnishing)   (3200)

Loss at Disposal (equipment)    800

Credit card receivables Increased (680)

Accounts receivable Increased (1,500)

Inventories Increased (1,200)

Prepaid expenses Decreased 800

Accounts payable Decreased (2,100)

Accrued payroll payable Increased 2,400

Taxes payable Decreased (900)

Cashflow from operating       226420

Investing Activities

Sale of furnishing     8,600

Sale of equipment   2,000

Purchase of furnishing (16,800)

Purchase of equipment (24,200)

Cash flow used on investing activities 30,400

Financing Activities

payment to lenders      (54,800)

Cash dividends paid   (122,400)

Cash flow used on financing activities 177,200

Cash balance at Dec 31th 2008 30,840

Cash balance at Dec 31th 2007 12,020

Cashflow generated for the year ended Dec 31th 2008 18,820

Explanation:

From the net income we remove the non-monettary terms

as gain at disposal, loss at disposal and depreciation.

Increase in assets decrease the cash as it was used to acquired

increase of liabilities increase cahs as payment was delayed

the opposite is true when these variables decreases.

a

explanation:

answerpounds of plastic to purchase 200+60-20=(240);