ACT 3392 Troy University Cash Flow Statement Cash Flows from Operating Activities Paper

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• ) G Company’s balance sheets and income statement follow:
• Cash $700,000 $2,043,000Accountsreceivables, net 1,200,000 800,000Prepaiditems 100,000 138,000Investments 0 412,000Plantassets 3,800,000 4,600,000Accumulateddepreciation (1,000,000) (1,400,000)$4,800,000$6,593,000Short-termdebt 200,000 750,000Accountspayable 100,000 100,000Accruedliabilities 300,170 88,000Cashdividends payable 100,000 105,000Bondspayable, net 298,830 496,000Commonstock ($1 par value) 100,000 100,000Additionalpaid-in-capital, common stock 1,400,000 1,400,000Treasurystock (75,000) (95,000)Retainedearnings 2,376,000 3,649,000$4,800,000$6,593,000Sales $19,000,000Operating expenses16,800,000Other income/gains/losses, net 18,406Interest expense 29,000Income before taxes 2,189,406Income tax expense 496,406Net income $1,693,000

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• On 01-01-19, G paid a $25,000 premium on a life insurance policy on G’s CEO. G is the beneficiary on the policy. The premium payment was for the period 01-01-19 to 12-31-19. G only has one of these policies.
• During 2019, G declared and paid cash dividends on its outstanding common stock.
• During 2019, G made a cash contribution to its defined-benefit pension plan.
• On G’s income statement, the “operating expenses” caption includes, but is not limited to, depreciation.
• G’s accounts payable account is used solely for inventory purchases made on a credit basis.
• G records adjusting journal entries only once a year as of year-end.
• G uses the direct method.
• G identifies its operating cash receipts as receipts from customers
• G separates its operating cash payments into:
  • Payments to suppliers for inventory
  • Payments for operating expenses (other than pension plan-related)
  • Payments for (contributions to) its pension plan
  • Payments for income taxes

Prepare a statement of cash flows (including any required disclosures) for G the year ended 12-31-19. Label your cash flow section activity answers as cash provided by OR cash used in. In your footnote reconciliation of net income to cash flows from operating activities, be specific in your reconciling items. Also, be sure to support your reconciling item amounts with journal entries and/or other supporting calculations that you deem appropriate.