The income statement and additional data of Minerals ​Plus, Inc.​ follows:

Question

Minerals Plus, Inc.
Income Statement
Year Ended September 30, 2024
Net Sales Revenue $235,000
Cost of Goods Sold 92,000
Gross Profit 143,000
Operating Expenses:
Salaries Expense $57,000
Depreciation Expense—Plant Assets 22,000
Total Operating Expenses 79,000
Net Income Before Income Taxes 64,000
Income Tax Expense 13,440
Net Income $50,560

Complete the statement one section at a​ time, beginning with the cash flows from operating activities. ​(Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the​ statement, leave the box​ empty; do not select a label or enter a​ zero.)

Answer 1

To complete the Cash Flow Statement for Minerals Plus, Inc. under the indirect method, we will start from the net income and adjust for non-cash items and changes in working capital.

Here's the Cash Flow Statement for the year ended September 30, 2024:

Cash Flow Statement

Cash Flows from Operating Activities:

• Net Income: $50,560
  (Adding this first as the starting point)
• Adjustments to reconcile net income to net cash provided by operating activities:
  • Add: Depreciation Expense: $22,000
  • (Additional adjustments for changes in working capital, if applicable, would be listed here. But since those figures are not given, we will leave it as is.)

Total Adjustments:

• Total Adjustments: $22,000

Net Cash Provided by Operating Activities:

• Net Cash Provided by Operating Activities:
  • $50,560 + $22,000 = $72,560

So the completed section for Cash Flows from Operating Activities would look like this:

Cash Flows from Operating Activities:

1. Net Income: $50,560
2. Add: Depreciation Expense: $22,000
3. Net Cash Provided by Operating Activities: $72,560

(If there were changes in accounts receivable, inventory, accounts payable, etc., based on additional data, those would also be included and calculated here. However, since no additional data is given, those components are not included.)

Cash Flows from Investing Activities:

(If there were any investing activities, they would be listed here, such as purchase/sale of equipment or investments.)

Cash Flows from Financing Activities:

(If there were any financing activities, they would be listed here, such as issuance of stock or repayment of debt.)

In conclusion, with just the operating activities section filled in, we have $72,560 as part of the overall cash flow statement so far. If you have additional details on investing and financing activities, I can help you fill those out as well!

Answer 2

September 30
2024 2023
Cash $34,000 $21,440
Accounts Receivable 44,000 57,000
Merchandise Inventory 95,000 87,000
Land 72,000 95,000
Plant Assets 180,000 60,000
Accumulated Depreciation (46,000) (24,000)
Accounts Payable 34,000 21,000
Accrued Liabilities 18,000 23,000
Notes Payable (long-term) 14,000 13,000
Common Stock, no par 43,000 11,000
Retained Earnings 270,000 228,440

Now redo the statement, beginning with cash flows from operating activities

Answer 3

Sure! Now that we have the additional information about the balance sheet, we can make adjustments for changes in working capital accounts and complete the Cash Flow Statement starting from cash flows from operating activities.

Cash Flow Statement for the Year Ended September 30, 2024

Cash Flows from Operating Activities:

• Net Income: $50,560

Adjustments to reconcile net income to net cash provided by operating activities:

• Add: Depreciation Expense: $22,000
• Changes in operating assets and liabilities:
  • Decrease in Accounts Receivable:
    \( 57,000 - 44,000 = 13,000 \) (Add)
  • Increase in Merchandise Inventory:
    \( 95,000 - 87,000 = (8,000) \) (Subtract)
  • Increase in Accounts Payable:
    \( 34,000 - 21,000 = 13,000 \) (Add)
  • Decrease in Accrued Liabilities:
    \( 23,000 - 18,000 = (5,000) \) (Subtract)

Now, let's calculate these adjustments step by step:

1. Net Income: $50,560
2. Add: Depreciation Expense: $22,000
3. Add: Decrease in Accounts Receivable: $13,000
4. Subtract: Increase in Merchandise Inventory: $(8,000)
5. Add: Increase in Accounts Payable: $13,000
6. Subtract: Decrease in Accrued Liabilities: $(5,000)

Total Adjustments Calculation

Total Adjustments:

• $22,000 (Depreciation)
• • $13,000 (Decrease in Accounts Receivable)
• • $8,000 (Increase in Inventory)
• • $13,000 (Increase in Accounts Payable)
• • $5,000 (Decrease in Accrued Liabilities)

Calculating the total adjustments:

• Total Adjustments = $22,000 + $13,000 - $8,000 + $13,000 - $5,000
• Total Adjustments = $35,000

Net Cash Provided by Operating Activities Calculation

Net Cash Provided by Operating Activities:

• $50,560 (Net Income) + $35,000 (Total Adjustments) = $85,560

Completed Cash Flow Statement Section

Cash Flows from Operating Activities:

1. Net Income: $50,560
2. Add: Depreciation Expense: $22,000
3. Add: Decrease in Accounts Receivable: $13,000
4. Subtract: Increase in Merchandise Inventory: $(8,000)
5. Add: Increase in Accounts Payable: $13,000
6. Subtract: Decrease in Accrued Liabilities: $(5,000)
7. Net Cash Provided by Operating Activities: $85,560

Cash Flows from Investing Activities

(Any investing activities, such as purchases or sales of fixed assets, would be detailed here.)

Cash Flows from Financing Activities

(Any financing activities, such as issuance of stock or repayments of loans, would be detailed here.)

This summarises the Cash Flows from Operating Activities for Minerals Plus, Inc. If you have any details about investing or financing activities, I can help you complete those sections as well!

Answer 4

Cash flows from investing activities

Answer 5

To complete the "Cash Flows from Investing Activities" section of the Cash Flow Statement for Minerals Plus, Inc., we need to consider any capital expenditures, asset purchases, or asset sales that occurred during the year. Based on the information provided earlier, we do not have specific details on transactions regarding the purchase or sale of assets.

However, we can infer the following from the balance sheet data you provided:

1. Land: The value decreased from $95,000 in 2023 to $72,000 in 2024. This indicates that the company likely sold land, which would result in a cash inflow.

2. Plant Assets: The value increased significantly from $60,000 in 2023 to $180,000 in 2024. This suggests that the company made capital expenditures to acquire new plant assets, resulting in a cash outflow.

3. Accumulated Depreciation: Note that accumulated depreciation is not directly a cash flow activity; it is a contra asset account that reflects the total depreciation expense allocated to plant assets.

Cash Flow from Investing Activities Calculation

Here’s how you can summarize the cash flows from investing activities based on the changes in the balance sheet:

• Cash inflow from sale of land:

  • Initial Land Value in 2023: $95,000
  • Ending Land Value in 2024: $72,000
  • Cash inflow from the sale = $95,000 - $72,000 = $23,000 (assuming the entire decrease represents a sale)

• Cash outflow for plant asset purchases:

  • Initial Plant Assets in 2023: $60,000
  • Ending Plant Assets in 2024: $180,000
  • Cash outflow for purchases = $180,000 - $60,000 = $120,000

Complete Cash Flows from Investing Activities Section

Now that we have calculated these values, the investing activities section is detailed as follows:

Cash Flows from Investing Activities:

1. Cash Proceeds from Sale of Land: $23,000 (Inflows)
2. Cash Payments for Purchase of Plant Assets: $(120,000) (Outflows)
3. Net Cash Used in Investing Activities: $(97,000)

Summary of Cash Flows from Investing Activities

• Net Cash Used in Investing Activities is calculated as follows:
  • $23,000 (inflow) - $120,000 (outflow) = $(97,000)

With this information, you now have the complete "Cash Flows from Investing Activities" section. If you have any additional information or transactions to consider, feel free to share!

Answer 6

Incorrect. The cash payment for acquisition of plant assets was (106,000) making the net cash (83,000)
now please do the cash flows from financing activities

Answer 7

Thank you for the update regarding the cash payment for the acquisition of plant assets. Let's clarify the Cash Flows from Investing Activities based on your input:

Cash Flows from Investing Activities

1. Cash Proceeds from Sale of Land: $23,000 (Inflow)
2. Cash Payments for Purchase of Plant Assets: $(106,000) (Outflow)
3. Net Cash Used in Investing Activities: $(83,000)

Now that we have the accurate details for investing activities, let’s move on to the Cash Flows from Financing Activities.

Cash Flows from Financing Activities

To determine the Cash Flows from Financing Activities, we will need to look at changes in the relevant financing accounts from the balance sheet. The likely accounts include common stock, notes payable, and possibly any dividends paid (if mentioned).

From your provided data:

• Common Stock increased from $11,000 in 2023 to $43,000 in 2024, which reflects a cash inflow from the issuance of stock.
• Notes Payable (long-term) increased from $13,000 in 2023 to $14,000 in 2024, which indicates an inflow from a borrowing activity.
• There is no information provided about dividends paid, so we will not include that if it is not available.

Calculation of Cash Flows from Financing Activities

Details:

1. Cash Inflow from Issuance of Common Stock:

   • Increase in Common Stock = $43,000 - $11,000 = $32,000 (Inflow)

2. Cash Inflow from Notes Payable:

   • Increase in Notes Payable = $14,000 - $13,000 = $1,000 (Inflow)

Complete Cash Flows from Financing Activities Section

Cash Flows from Financing Activities:

1. Cash Proceeds from Issuance of Common Stock: $32,000 (Inflow)
2. Cash Proceeds from Increase in Notes Payable: $1,000 (Inflow)
3. Net Cash Provided by Financing Activities: $33,000

Summary of Cash Flows from Financing Activities

• Net Cash Provided by Financing Activities:
  • $32,000 (from common stock) + $1,000 (from notes payable) = $33,000

With that, the cash flow statement is almost complete. If you wish to combine all the sections or have any other additional details you’d like to include, please let me know!

Answer 8

Incorrect. The cash receipt from issuance of common stock is 32,000. The cash payment of notes payable is (13,000). The cash payment of dividends is (9,000). This makes the net cash provided by (used for) financing as 10,000.
Please calculate net increase(decrease) in cash
cash balance, september 30, 2023
cash balance september 30, 2024
non-cash investing and financing activities
and total non-cash investing and financing activities

Answer 9

Thank you for the clarification regarding the financing activities. Let’s summarize the information you provided and compute the necessary values, including the net increase/decrease in cash, cash balances for the respective periods, and non-cash investing and financing activities.

Summary of Cash Flows from Financing Activities

Based on your input:

1. Cash Proceeds from Issuance of Common Stock: $32,000 (Inflow)
2. Cash Payment of Notes Payable: $(13,000) (Outflow)
3. Cash Payment of Dividends: $(9,000) (Outflow)

Net Cash Provided by (Used for) Financing Activities:

• \(32,000 - 13,000 - 9,000 = 10,000\)

Cash Balance Calculation

Cash Balance, September 30, 2023:

• $21,440

Cash Flows:

1. Net Cash Provided by Operating Activities: $85,560
2. Net Cash Used in Investing Activities: $(83,000)
3. Net Cash Provided by Financing Activities: $10,000

Total Net Cash Flows:

• \(85,560 - 83,000 + 10,000 = 12,560\)

Cash Balance, September 30, 2024:

• Cash Balance Start + Total Net Cash Flows
• \(21,440 + 12,560 = 34,000\)

Cash Flow Summary

• Net Increase in Cash: $12,560
• Cash Balance, September 30, 2023: $21,440
• Cash Balance, September 30, 2024: $34,000

Non-Cash Investing and Financing Activities

Based on the information provided, there are no specific non-cash investing and financing activities highlighted, but if there are significant transactions that did not involve cash (such as acquiring an asset by assuming a liability), please let me know so I can accurately include them.

Assuming there are no non-cash activities:

• Total Non-Cash Investing and Financing Activities: $0

Final Summary

1. Net Increase (Decrease) in Cash: $12,560
2. Cash Balance, September 30, 2023: $21,440
3. Cash Balance, September 30, 2024: $34,000
4. Total Non-Cash Investing and Financing Activities: $0

If there are any non-cash activities to report, or if you have further questions, please let me know!