Nongshin Company reported the following income statements for the year ended on Dec. 31, 2021 and the
Question:
Nongshin Company reported the following income statements for the year ended on Dec. 31, 2021 and the balance sheets for 2021 and 2020.
Income Statement | Year 2021 | Balance Sheet | Dec. 31, 2021 | Dec. 31, 2020 |
Net Sales Revenue | $ 180,000 | Cash | ? | ? |
Cost of Goods Sold | ($145,000) | Accounts Receivable | $25,000 | $33,000 |
Gross Profit | $ 35,000 | Merchandise Inventory | $18,000 | $15,000 |
Depreciation Expense | ($1,100) | Land | $130,000 | $80,000 |
Other Operating Expenses | ($2,600) | Equipment | $40,000 | $102,000 |
Operating Income | $ 31,300 | Accumulated Depreciation | ($6,000) | ($55,000) |
Interest Expense | ($500) | Accounts Payable | $9,200 | $7,000 |
Loss from Disposal | ($950) | Notes Payable (Long-term) | $45,000 | $10,000 |
Income Tax Expense | ($6,000) | Common Stock | ? | ? |
Net Income | $ 23,850 | Retained Earnings | $180,000 | $125,000 |
Additional information:
- Nongshin purchased land for $15,000. Of this amount, $3,000 was paid in cash and $12,000 was paid by issuing a three-year note payable.
- Nongshin sold equipment and received cash. The equipment had a cost of $11,000 and accumulated depreciation of $9,400 before disposal. The loss from the disposal is $950.
- During 2021, there were no cash payments to retire notes payable.
- During 2021, Nongshin issued common stock for $4,000 cash. Nongshin has not issued any preferred stock.
- All dividends were paid in cash during 2021.
- All of Nongshin’s sales were credit sales in 2021.
Q28. Find Nongshin’s cash flow from investing activities in 2021.
($1,350)
($2,350)
($3,350)
($4,350)
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell