Financial statements are given below K ces At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
K ces At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilition Equity Common atock, no par value. Retained earnings Total liabilities and equity MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 $ 54,000 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income (22,400) 31,600 6,700 8,700 16,200 3,900 $ 12,300 Current Year Prior Year $ 55,600 12,500 112,100 180,200 62,100 (28,100) $ 214,200 $ 29,900 500 30,400 156,300 27,500 $ 214,200 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,800 cash. c. Purchased equipment for cash; no equipment was sold. $ 55,900 15,400 89,000 160,300 52,700 (19,400) $ 193,600 $ 32,200 700 32,900 145,500 15,200 $ 193,600 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. ( K ces At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilition Equity Common atock, no par value. Retained earnings Total liabilities and equity MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 $ 54,000 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income (22,400) 31,600 6,700 8,700 16,200 3,900 $ 12,300 Current Year Prior Year $ 55,600 12,500 112,100 180,200 62,100 (28,100) $ 214,200 $ 29,900 500 30,400 156,300 27,500 $ 214,200 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,800 cash. c. Purchased equipment for cash; no equipment was sold. $ 55,900 15,400 89,000 160,300 52,700 (19,400) $ 193,600 $ 32,200 700 32,900 145,500 15,200 $ 193,600 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. (
Expert Answer:
Answer rating: 100% (QA)
Answer To prepare the statement of cash flows using the indirect method we need to start with net in... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Comparative financial statement data of McClaine Optical Mart follow: Other information: 1. Market price of McClaine common stock: $89.38 at December 31, 2014, and $85.67 at December 31, 2013 2....
-
Pamela Albright is the manager of the audit of Stanton Enterprises, a public company that manufactures formed steel subassemblies for other manufacturers. Albright is planning the 2018 audit and is...
-
Josie Inc. collects cash from customers two ways: 1. Accrued Revenue. Some customers pay Josie after Josie has performed service for the customer. During 2017, Josie made sales of $50,000 on account...
-
Transaction data for Aromashodu Real Estate Agency are presented in E2-4. Instructions Journalize the transactions. (You may omit explanations.)
-
Enron used off-balance-sheet entities to overstate earnings via related-party sales and loans disguised as sales. True/False
-
Hotbox Ltd produces pizza boxes using two processes cutting and packaging. The production budget for the year ending 30 June 2025 estimated raw materials use of $400 000, factory overhead of $270...
-
Al Cromwell places a market order to buy a round lot of Thomas, Inc., common stock, which is traded on the NYSE and is currently quoted at $50 per share. Ignoring brokerage commissions, determine how...
-
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable...
-
Prepare a worksheet for Altuve Co. from the following trial balance (Figure 11.9) and additional data. Additional Data A. Inventory physical count, $13 B. Store supplies on hand, $4 C. Depreciation...
-
Write a summary answering the two following requirements: 1. What are the components of the inventory (raw material, work-in-process, finished goods)? 2. How were you able to determine that...
-
When a certain ideal gas thermometer is dipped in water boiling at atmospheric pressure, the mercury level in the right \(\mathrm{arm}\) is \(1279 \mathrm{~mm}\) above the reference mark. When the...
-
While assembling part of an electric generator, you realize that two pieces were not properly labeled. One piece is a nonconducting block, and the other is a conducting block, but without labels you...
-
Find the state vector via the formal-solution approach. \(\dot{\mathbf{x}}=\left[\begin{array}{cc}0 & 1 \\ 0 & -\frac{3}{2}\end{array} ight] \mathbf{x}+\left[\begin{array}{l}0 \\ 1\end{array} ight]...
-
In a simplistic model of the hydrogen atom, the electron orbits the proton in a circle of radius \(53 \mathrm{pm}\). What is the orbital period of the electron, in seconds, if the force responsible...
-
Some firms products are so well known that the entire category of products offered in the industry (including rivals products) is often referred to by the leading firms brand name (which is called an...
-
Select from the following list of projects and develop the organization chart and the activities table as shown in the examples Electronic Chip Manufacturing Plant Power Production Plant (Solar...
-
The Pletcher Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using...
-
According to the U. S. GAAP Conceptual Framework, firms recognize revenue when it is realized (or realizable) and earned. The (or realizable) and earned. The SEC has provided four criteria that it...
-
Temporary Differences, Deferred Tax Liabilities. Meyer- Swift Construction Equipment Manufacturers engaged in an installment sale with one of its major customers. The firm negotiated the terms of the...
-
Does the aging of accounts receivable method of estimating the allowance for uncollectible accounts provide a more accurate measurement of net accounts receivable than bad debt expense? Explain. .
-
To what amount will the following investments accumulate? a. $6,000 invested for 12 years at 12 percent compounded annually b. $7,500 invested for 8 years at 8 percent compounded annually c. $6,400...
-
What is the present value of the following future amounts? a. $805 to be received 10 years from now discounted back to the present at 10 percent b. $376 to be received 5 years from now discounted...
-
At what annual rate would the following have to be invested? a. \($820\) to grow to \($1,988.12\) in 13 years b. \($320\) to grow to \($423.10\) in 6 years c. \($57\) to grow to \($290.30\) in 18...
Study smarter with the SolutionInn App