Bristol Corporations income statement for the year ended June 30, 2011, and its comparative balance sheets for

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Bristol Corporation’s income statement for the year ended June 30, 2011, and its comparative balance sheets for June 30, 2011 and 2010 follow.

Bristol Corporation

Income Statement

For the Year Ended June 30, 2011

Sales ………………………………………       $234,000

Cost of goods sold ……………………….  156,000

Gross margin …………………………….    $ 78,000

Operating expenses ………………………  45,000

Operating income ………………………..  $ 33,000

Interest expense …………………………         2,800

Income before income taxes …………….$ 30,200

Income taxes expense …………………..    12,300

Net income ……………………………..          $ 17,900

Bristol issued a $22,000 note payable for purchase of furniture; sold furniture that cost $27,000 with accumulated depreciation of $15,300 at carrying value; recorded depreciation on the furniture for the year, $19,300; repaid a note in the amount of $20,000; issued $25,000 of common stock at par value; and paid dividends of $4,300. Prepare Bristol’s statement of cash flows for the year ended June 30, 2011, using the indirect method.

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Related Book For  answer-question

Financial Accounting

ISBN: 978-0538476010

11th edition

Authors: Belverd E. Needles, Marian Powers

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