Financial statements for Peachfield Corporation as well as additional information relevant to cash flows during the...

  

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Financial statements for Peachfield Corporation as well as additional information relevant to cash flows during the period follow. Peachfield Corporation Income Statement For Year Ended December 31, 20-2 Net sales Cost of goods sold Gross profit Operating expenses Operating income Other revenues and expenses: $985,000 515,000 $470,000 299,400 $170,600 Gain on sale of office equipment $5,000 Interest revenue 2,100 Interest expense (436) 6,664 Income before taxes Income tax expense Net income $177,264 60,500 $116,764 Peachfield Corporation Statement of Retained Eamings For Year Ended December 31, 20-2 Retained eamings, lanuary1, 20-2 Net income Less dividends $141,973 $1 16,764 20,000 Net increase in retained eamings 96,764 Retained eamings, December 31, 20-2 $238,737 Additional information: 1. Office equipment was sold during the year for $75,000. $ 80,000 (10,000) Cost Accumulated depreciation S 70,000 75,000 S 5,000 Book value Market value Gain 2. Depreciation expense for the year was $62,400 as follows: Store equipment Delivery equipment Office equipment $24,000 27,000 11,400 $62,400 3. No other equipment was sold during the year. The following purchases were made for cash. $ 5,200 Store equipment Delivery equipment Office equipment 78,000 24,060 $157,260 4. Declared and paid cash dividends of $20,000. 5. Issued 11,200 shares of $10 par common stock for $118,000. 6. Issued a note payable for $10,700. 7. Additional store equipment was acquired by issuing a long-term note payable for $20,000. 1. Prepare a statement of cash flows explaining the change in cash and cash equivalents. Financial statements for Peachfield Corporation as well as additional information relevant to cash flows during the period follow. Peachfield Corporation Income Statement For Year Ended December 31, 20-2 Net sales Cost of goods sold Gross profit Operating expenses Operating income Other revenues and expenses: $985,000 515,000 $470,000 299,400 $170,600 Gain on sale of office equipment $5,000 Interest revenue 2,100 Interest expense (436) 6,664 Income before taxes Income tax expense Net income $177,264 60,500 $116,764 Peachfield Corporation Statement of Retained Eamings For Year Ended December 31, 20-2 Retained eamings, lanuary1, 20-2 Net income Less dividends $141,973 $1 16,764 20,000 Net increase in retained eamings 96,764 Retained eamings, December 31, 20-2 $238,737 Additional information: 1. Office equipment was sold during the year for $75,000. $ 80,000 (10,000) Cost Accumulated depreciation S 70,000 75,000 S 5,000 Book value Market value Gain 2. Depreciation expense for the year was $62,400 as follows: Store equipment Delivery equipment Office equipment $24,000 27,000 11,400 $62,400 3. No other equipment was sold during the year. The following purchases were made for cash. $ 5,200 Store equipment Delivery equipment Office equipment 78,000 24,060 $157,260 4. Declared and paid cash dividends of $20,000. 5. Issued 11,200 shares of $10 par common stock for $118,000. 6. Issued a note payable for $10,700. 7. Additional store equipment was acquired by issuing a long-term note payable for $20,000. 1. Prepare a statement of cash flows explaining the change in cash and cash equivalents.

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