Podracer Productions provides the following income statement for the year ended December 31, 2013: Sales . .
Question:
Podracer Productions provides the following income statement for the year ended December 31, 2013:
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,530,600
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 895,400
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 635,200
General expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255,400
Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,500
Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,300
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 242,000
Interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,250
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,500)
Loss on sale of equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,500)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 237,250
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,500
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 151,750
In addition, Podracer provides the following balance sheet information:
.................................................................. Dec. 31, 2013 ............... Dec. 31, 2012
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,400 ................... $225,400
Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100 ......................... 2,250
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,300 ....................... 59,550
Prepaid general expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 17,600 ....................... 14,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,500 ....................... 46,300
Accrued general expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 19,500 ....................... 21,750
Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900 .......................... 1,100
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,500 ........................ 9,750
Salaries payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,700 ........................ 5,400
Instructions:
Using the simultaneous analysis matrix illustrated in the text, prepare the Operating Activities section of the statement of cash flows using
(1) The direct method and
(2) The indirect method?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Income Statement Adjustments Statement of Cash Flows Sales 1530600 25000 1505600 Interest revenue 17...View the full answer
