GL1201 - Based on Exercise 12-11 LO P1, P2, P3, A1

Use the following financial statements and additional information.

GREEN INC. Comparative Balance Sheets June 30, 2017 and 2016
	2017				2016
Assets
Cash	$	65,400			$	23,600
Accounts receivable, net		68,000				53,000
Inventory		71,000				98,000
Prepaid expenses		6,200				7,800
Total current assets		210,600				182,400
Equipment		202,000				187,000
Accum. depreciationEquipment		(51,000	)			(17,000	)
Total assets	$	361,600			$	352,400
Liabilities and Equity
Accounts payable	$	34,000			$	42,000
Wages payable		8,000				19,000
Income taxes payable		4,900				5,400
Total current liabilities		46,900				66,400
Notes payable (long term)		45,000				90,000
Total liabilities		91,900				156,400
Equity
Common stock, $5 par value		220,000				160,000
Retained earnings		49,700				36,000
Total liabilities and equity	$	361,600			$	352,400

GREEN INC. Income Statement For Year Ended June 30, 2017
Sales				$	1,080,000
Cost of goods sold					661,000
Gross profit					419,000
Operating expenses
Depreciation expense	$	91,000
Other expenses		107,000
Total operating expenses					198,000
					221,000
Other gains (losses)
Gain on sale of equipment					7,700
Income before taxes					228,700
Income taxes expense					70,010
Net income				$	158,690

Additional Information

A $45,000 note payable is retired at its $45,000 carrying (book) value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $89,000 cash.

Received cash for the sale of equipment that had cost $74,000, yielding a $7,700 gain.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

All purchases and sales of inventory are on credit.

Journal entry worksheet

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Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any.

Note: Enter debits before credits.

Date	Account Title	Debit	Credit
Jun 30

Prepare the Statement of Cash flows for the year ended June 30, 2017 using the Direct Method. Hint Use the Cash T-account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values.

UnadjustedAdjustedPost-closing

Unadjusted

GREEN INC.
Statement of Cash Flows (Direct Method)
For Year Ended June 30, 2017
Cash flows from operating activities:
Cash flows from investing activities:
Cash flows from financing activities:

Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values.

UnadjustedAdjustedPost-closing

Unadjusted

GREEN INC.
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2017
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities: