Use the following financial statements and additional information. ARNOLD INCORPORATED Comparative Balance Sheets June 30, 2019...
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Use the following financial statements and additional information. ARNOLD INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 2019 $ 77,900 73,000 63,000 5,800 219,700 186,000 (45,000) $ 360,700 $ 26,000 8,000 4,000 38,000 33,000 71,000 240,000 49,700 $ 360,700 2018 $ 17,100 57,000 88,000 7,300 169,400 172,000 (15,000) $ 326,400 $ 32,000 19,000 4,400 55,400 65,000 120,400 170,000 36,000 $ 326,400 Sales Cost of goods sold Gross profit Operating expenses ARNOLD INCORPORATED Income Statement For Year Ended June 30, 2019 Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 81,000 97,000 $ 978,000 599,000 379,000 $ 178,000 201,000 5,800 206,800 63,300 $ 143,500 Additional Information a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $79,000 cash. d. Received cash for the sale of equipment that had cost $65,000, yielding a $5,800 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. ARNOLD INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Use the following financial statements and additional information. ARNOLD INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 2019 $ 77,900 73,000 63,000 5,800 219,700 186,000 (45,000) $ 360,700 $ 26,000 8,000 4,000 38,000 33,000 71,000 240,000 49,700 $ 360,700 2018 $ 17,100 57,000 88,000 7,300 169,400 172,000 (15,000) $ 326,400 $ 32,000 19,000 4,400 55,400 65,000 120,400 170,000 36,000 $ 326,400 Sales Cost of goods sold Gross profit Operating expenses ARNOLD INCORPORATED Income Statement For Year Ended June 30, 2019 Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 81,000 97,000 $ 978,000 599,000 379,000 $ 178,000 201,000 5,800 206,800 63,300 $ 143,500 Additional Information a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $79,000 cash. d. Received cash for the sale of equipment that had cost $65,000, yielding a $5,800 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. ARNOLD INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities:
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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