1. Calculate the operating section of cash flow using the direct method

2. Calculate the finance section of cash flow using the same information from the next page assuming that the cash dividend was paid

3. calculate the Inventory turnover ratio with the information provided 

Transcribed Image Text:

Genesis Corp. Income Statement For Year Ended December 31, 2014 S 590,000 .... $300,000 Sales 216,000 Cost of goods sold. Wages and other operating expenses. Interest expense 7,000 15,000 24,000 (562,000) (6,000) Income taxes expense Depreciation expense. Loss on sale of equipment 16,000 Gain on retirement of bonds 2438,000 Net income. Genesis Corp. Balance Sheet December 31, 2014 and 2013 2014 2013 Assets Current assets: $ 17,000 $ 12,000 Cash 60,000 40,000 Accounts recelvable 84,000 70,000 Merchandise inventory Prepaid expenses. Total current assets. Long-term assets: Property, plant and equipment. Less Accumulated depreciation. 6,000 4,000 $167,000 $126,000 $250,000 $210,000 (60,000) 5357,000 (48,000) $288,000 Total assets. Liabilities Current liabilities: $ 35,000 $ 40,000 Accounts payable Interest payable. Income taxes payable. Total current liabilities Long-term labilities: Bonds payable. 3,000 4,000 22,000 $ 60,000 12,000 5 56,000 90,000 64,000 Total liabilities $150,000 $120,000 Equity Contributed capital: Common shares $ 80,000 Retained earnings Total equity. Total liabilities and equity. $ 95,000 112,000 207,000 88,000 168,000 $288,000 5357.000 Genesis Corp. Income Statement For Year Ended December 31, 2014 S 590,000 .... $300,000 Sales 216,000 Cost of goods sold. Wages and other operating expenses. Interest expense 7,000 15,000 24,000 (562,000) (6,000) Income taxes expense Depreciation expense. Loss on sale of equipment 16,000 Gain on retirement of bonds 2438,000 Net income. Genesis Corp. Balance Sheet December 31, 2014 and 2013 2014 2013 Assets Current assets: $ 17,000 $ 12,000 Cash 60,000 40,000 Accounts recelvable 84,000 70,000 Merchandise inventory Prepaid expenses. Total current assets. Long-term assets: Property, plant and equipment. Less Accumulated depreciation. 6,000 4,000 $167,000 $126,000 $250,000 $210,000 (60,000) 5357,000 (48,000) $288,000 Total assets. Liabilities Current liabilities: $ 35,000 $ 40,000 Accounts payable Interest payable. Income taxes payable. Total current liabilities Long-term labilities: Bonds payable. 3,000 4,000 22,000 $ 60,000 12,000 5 56,000 90,000 64,000 Total liabilities $150,000 $120,000 Equity Contributed capital: Common shares $ 80,000 Retained earnings Total equity. Total liabilities and equity. $ 95,000 112,000 207,000 88,000 168,000 $288,000 5357.000

Answer rating: 100% (QA)

Step 1 Under direct method cash received from customer cash paid to creditors for inventory for oper... View the full answer