LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income Statement...
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LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income Statement For Year Ended December 31, 2020 Sales $ 936,600 564,200 Cost of goods sold Gross profit $ 372,400 Operating expenses: $ 25,200 Depreciation expense Other expenses 240,800 266,000 Total operating expenses Profit from operations $ 106,400 Income taxes 26,600 Profit $ 79,800 Assets Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable Income taxes payable Common shares Retained earnings Total liabilities and equity LAG Network Inc. Comparative Balance Sheet Information 2020 $ 81,270 50,400 280,630 162,400 (79,800) December 31 $ 494,900 $ 39,200 9,600 371,000 65,100 $ 494,900 2019 $ 56,000 39,200 259,000 140,000 (54,600) $ 439,600 $ 51,800 18,200 325,500 44,100 $ 439,600 Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $22,400 cash. b. 18,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $58,800 of cash dividends during the year. Other information regarding LAG Network Inc.: a. All sales are credit sales. b. All credits to accounts receivable are receipts from customers. c. All purchases of merchandise are on credit. d. All debits to accounts payable result from payments for merchandise. e. Other operating expenses are cash expenses. f. The only decrease in income taxes payable is for payment of taxes. Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts.) LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income Statement For Year Ended December 31, 2020 Sales $ 936,600 564,200 Cost of goods sold Gross profit $ 372,400 Operating expenses: $ 25,200 Depreciation expense Other expenses 240,800 266,000 Total operating expenses Profit from operations $ 106,400 Income taxes 26,600 Profit $ 79,800 Assets Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable Income taxes payable Common shares Retained earnings Total liabilities and equity LAG Network Inc. Comparative Balance Sheet Information 2020 $ 81,270 50,400 280,630 162,400 (79,800) December 31 $ 494,900 $ 39,200 9,600 371,000 65,100 $ 494,900 2019 $ 56,000 39,200 259,000 140,000 (54,600) $ 439,600 $ 51,800 18,200 325,500 44,100 $ 439,600 Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $22,400 cash. b. 18,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $58,800 of cash dividends during the year. Other information regarding LAG Network Inc.: a. All sales are credit sales. b. All credits to accounts receivable are receipts from customers. c. All purchases of merchandise are on credit. d. All debits to accounts payable result from payments for merchandise. e. Other operating expenses are cash expenses. f. The only decrease in income taxes payable is for payment of taxes. Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts.)
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LAG INC Cash flow statement Direct Method Cash Flow from operating ac... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
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