Below are selected account balances at June 30, 20X1 and 20X2 for NIKE Inc.

                                                                               20x2 ($)                          20x1 ($)

Cash                                                                    236,000                             61,000

Accounts Receivable                                            8,000                             12,000

Prepaid Insurance                                               5,000                              10,000

Inventory                                                            71,000                               60,000

Accounts payable                                               7,000                               10,000

Interest payable                                                 6,000                                  1,000

Unearned revenue                                          17,500                                12,500

Income taxes payable                                      5,000                                    5,000

Land                                                               450,000                                            0

Equipment                                                     339,000                               400,000

Accumulated Depreciation-Equip.            120,000                                130,000

The following is the draft Statement of Comprehensive Income

Sales revenue $480,000

Cost of goods sold 268,000

Gross profit 212,000

Loss on sale of equip 10,000

Expenses

Salaries and wages 51,000

Depreciation 9,200

Rent 5,800

Interest 13,200

Income tax 11,800 91,000

Net Income Operations $111,000

Net Comprehensive Income $172,000

Other financial information in 20x2 for NIKE Inc. is presented below:

1. Bought investment securities for $12,000 cash.
2. Borrowed $20,000 on a three-year notes payable (3%), on January 1, 20x2. Interest to be paid annually on January 1.
3. Sold machinery for cash and recorded a loss of $10,000 on the sale. This machinery was listed at gross amount of $100,000.
4. During the fiscal year 20x2, NIKE purchased land for $450,000. The purchase was financed by a bank loan of $450,000.
5. The difference between Net income Operations and Net Comprehensive Income is from an unrealized increase in financial assets classified as FVOCI.

Please make a statement of cash flows.

Answer rating: 100% (QA)

NIKE Inc Cash Flow Statement Indirect Method Particulars Amount Amount Cash flow from Operating Acti... View the full answer