The income statement and additional data of Specialized Services, Inc., follow:

Additional data follows:

a. Collections from customers are \($15,000\) more than sales.

b. Payments to suppliers are the sum of cost of goods sold plus advertising expense.

c. Payments to employees are \($2,000\) more than salary expense.

d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.

e. Acquisition of plant assets for cash is \($101,000\).

f. Proceeds from sale of land total \($24,000\).
g. Proceeds from issuance of common stock for cash total \($30,000\).
h. Payment of long-term note payable is \($15,000\).
i. Payment of dividends is \($11,000\).
j. Cash balance, June 30, 2009, was \($20,000\).
Requirement

1. Prepare Specialized Services’ statement of cash flows for the year ended June 30, 2010. Use the direct method.

Transcribed Image Text:

Revenues: Specialized Services, Inc. Income Statement Year Ended June 30, 2010 Sales Revenue $229,000 Dividend Revenue Total Revenues 8,000 $237,000 Expenses: Cost of Goods Sold $103,000 Salary Expense 45,000 Depreciation Expense 28,000 Advertising Expense 12,000 Interest Expense 2,000 Income Tax Expense 9,000 Total Expenses Net Income 199,000 $ 38,000