Based on the following information, prepare the cash flow statement using the indirect method. income statement Sales
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Question:
Based on the following information, prepare the cash flow statement using the indirect method.
income statement | |||
Sales | 420,000 | ||
cost of goods sold | 294,000 | ||
gross profit | 126,000 | ||
salaries expense | 48,000 | ||
depreciation expense | 12,000 | ||
interest expense | 2,800 | ||
rent expense | 46,800 | ||
0 | |||
total expenses | 109,600 | ||
operating income | 16,400 | ||
gain on equipment | 3,000 | ||
net income | 19,400 | ||
Statement of Retained Earnings | |||
Beginning Balance - Retained Earnings | $ 134,000 | ||
Plus - Net Income | 19,400 | ||
Less - Dividends | (7,500) | ||
Ending Balance - Retained Earnings | $ 145,900 | ||
Balance sheets | |||
2020 | 2021 | change | |
Assets: | |||
Cash | 72,600 | 34,400 | (38,200) |
Accounts Receivable | 47,600 | 81,600 | 34,000 |
Inventory | 54,800 | 70,800 | 16,000 |
prepaid expenses | 5,200 | 1,300 | (3,900) |
Equipment | 77,000 | 87,000 | 10,000 |
Accum. Depr - Equipment | (32,500) | (33,500) | (1,000) |
total assets | 224,700 | 241,600 | |
Liabilities: | |||
Accounts Payable | 25,700 | 38,700 | 13,000 |
accrued Liabilities | 5,000 | 7,000 | 2,000 |
Bonds Payable | 40,000 | 30,000 | (10,000) |
total liabilities | 70,700 | 75,700 | |
shareholders Equity: | |||
Common Stock | 20,000 | 20,000 | 0 |
Retained Earnings | 134,000 | 145,900 | 11,900 |
total equity | 154,000 | 165,900 | |
total liabilities and shareholder equity | 224,700 | 241,600 | |
other info: new equipment purchase | 30,000 | ||
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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