The income statement and additional data of One stop, Inc., follow Additional data: a. Collections from customers

Question:

The income statement and additional data of One stop, Inc., follow"
The income statement and additional data of One stop, Inc.,

Additional data:
a. Collections from customers are $15,000 more than sales.
b. Payments to suppliers are $2,300 more than the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $2,300 less than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
e. Acquisition of plant assets is $161,000. Of this amount, $133,000 is paid in cash and $28,000 by signing a long-term note payable.
f. Proceeds from sale of land total $25,000.
g. Proceeds from issuance of common stock total $93,000.
h. Payment of a long-term note payable is $29,000.
i. Payment of dividends is $ 10,000.
j. Cash balance, June 30, 2015, was $42,000.
Requirements
1. Prepare One Stop, Inc.'s, statement of cash flows and accompanying schedule of noncash investing and financing activities. Report operating activities by the direct method.
2. Evaluate One Stop's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

Question Posted: