Given the following income statement and balance sheet, find the net cash used for financing activities?...

Transcribed Image Text:

Given the following income statement and balance sheet, find the net cash used for financing activities? Income statement for 2020: Revenue $23,598 Cost of goods sold 11,456 Gross profit 12.142 Salary and wage expense $4,123 Depreciation expense 1,052 Other operating expenses 3.577 Total operating expenses Operating profit 8,752 3,390 Other revenues (expenses): Gain on sale of equipment 205 Interest expense (246) (41) Income before tax 3.349 Income tax expense 1.139 Net income $2.210 Balance Sheet: 2020 2019 Cash $1,011 $1.163 Accounts receivable 1,012 957 Inventory 3,984 3,277 Prepaid expenses 155 178 Total current assets 6,162 5,575 Land 510 510 Buildings 3,680 3,680 Equipment 8,798 8,555 Less: accumulated depreciation (3,443) (2.891) Total long-term assets 9,545 9,854 Total assets $15,707 $15,429 Accounts payable $3,588 $3,325 Salary and wage payable 85 75 Interest payable 62 74 Income tax payable 55 50 Other accrued liabilities 1.126 1,104 Total current liabilities 4,916 4,628 Long-term debt 3,075 3,575 Common stock 3,750 4.350 Retained earnings 3,966 2.876 Total liabilities and equity $15,707 $15,429 Answer: Given the following income statement and balance sheet, find the net cash used for financing activities? Income statement for 2020: Revenue $23,598 Cost of goods sold 11,456 Gross profit 12.142 Salary and wage expense $4,123 Depreciation expense 1,052 Other operating expenses 3.577 Total operating expenses Operating profit 8,752 3,390 Other revenues (expenses): Gain on sale of equipment 205 Interest expense (246) (41) Income before tax 3.349 Income tax expense 1.139 Net income $2.210 Balance Sheet: 2020 2019 Cash $1,011 $1.163 Accounts receivable 1,012 957 Inventory 3,984 3,277 Prepaid expenses 155 178 Total current assets 6,162 5,575 Land 510 510 Buildings 3,680 3,680 Equipment 8,798 8,555 Less: accumulated depreciation (3,443) (2.891) Total long-term assets 9,545 9,854 Total assets $15,707 $15,429 Accounts payable $3,588 $3,325 Salary and wage payable 85 75 Interest payable 62 74 Income tax payable 55 50 Other accrued liabilities 1.126 1,104 Total current liabilities 4,916 4,628 Long-term debt 3,075 3,575 Common stock 3,750 4.350 Retained earnings 3,966 2.876 Total liabilities and equity $15,707 $15,429 Answer: