A simplified balance sheet for Planet Cafe Inc. contain the following amounts at the end of 2019 and 2020.
Planet Cafe Inc.
Balance Sheet
As at October 3120202019AssetsCurrent AssetsCash$13,000$8,200Accounts Receivable$11,500$11,100Prepaid Rent$3,500$1,700Food & Beverage Inventory$33,200$11,300Total Current Assets$61,200$32,300Long-Term AssetsEquipment$178,000$169,000Accumulated Depreciation$-28,000$-15,100Total Long-Term Assets$150,000$153,900Total Assets$211,200$186,200LiabilitiesCurrent Liabilities$17,700$17,700Long-Term Liabilities$25,000$43,000Total Liabilities$42,700$60,700Shareholders’ EquityCommon Shares$78,000$57,000Retained Earnings$90,500$68,500Total Shareholders’ Equity$168,500$125,500Total Liabilities and Equity$211,200$186,200
Assume current liabilities include only items from operations (e.g., accounts payable, taxes payable). Long-term liabilities include items from financing (e.g. bonds and other long-term liabilities). Note that the company did not sell any equipment and did not borrow any additional long-term liabilities throughout the year.
Prepare the cash flow statement for 2020 using the indirect method. Assume no dividends were declared or paid in 2020.
Do not enter dollar signs or commas in the input boxes.
Use the negative sign for a decrease in cash.
Planet Cafe Inc.
Cash Flow Statement
For the Year Ended October 31, 2020Cash Flow from OperationsNet IncomeAnswerAdjustments for Non-Cash ItemsDepreciation ExpenseAnswerChange in Current Assets and Current LiabilitiesIncrease in Accounts ReceivableAnswerIncrease in Prepaid RentAnswerIncrease in Food & Beverage InventoryAnswerNet Cash Provided (Used) by Operating ActivitiesAnswerCash Flow from Investing ActivitiesPurchase of EquipmentAnswerNet Cash Provided (Used) by Investing ActivitiesAnswerCash Flow from Financing ActivitiesIssuance of Common SharesAnswerRepayment of Long-Term LiabilitiesAnswerNet Cash Provided (Used) by Financing ActivitiesAnswerNet Increase (Decrease) in CashAnswerCash at the Beginning of the YearAnswerCash at the End of the YearAnswer
The post A simplified balance sheet for Planet Cafe Inc. contain the following amounts at appeared first on Assignmentio.
