Nash Company, a major retailer of bicycles and accessories, operates several stores and is a publicly...

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Nash Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Nash as of May 31, 2025, are as follows. The company is preparing its statement of cash flows. Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant assets Plant assets Less: Accumulated depreciation-plant assets Net plant assets Total assets Nash Company Comparative Balance Sheet As of May 31 Current liabilities Accounts payable Salaries and wages payable Interest payable Total current liabilities Long-term debt Bonds payable Total liabilities Stockholders' equity Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2025 $28,400 75,200 220.600 8.900 333,100 597,800 148.500 449,300 $124,200 506,800 124,700 382,100 $782,400 $719,100 46,800 27,100 198,100 70,000 268,100 370,000 144,300 2024 514,300 $20,100 58.000 251.800 7,100 337,000 $114,900 71,200 25,100 211.200 100,000 311.200 280,000 127.900 407,900 $782,400 $719,100 Sales revenue Cost of goods sold Gross profit Expenses Salaries and wages expense Interest expense Depreciation expense Other expenses Total expenses Operating income Income tax expense Net income 1. 2. Nash Company Income Statement For the Year Ended May 31, 2025 3. 4 5. 6. 7. The following is additional information concerning Nash's transactions during the year ended May 31, 2025. (b) $1,245,200 723,200 522,000 254.100 74.700 23.800 8,100 360,700 161,300 43,300 $118.000 All sales during the year were made on account. All merchandise was purchased on account, comprising the total accounts payable account. Plant assets costing $91,000 were purchased by paying $21,000 in cash and issuing 7,000 shares of stock. The "other expenses" are related to prepaid items. All income taxes incurred during the year were paid during the year. In order to supplement its cash, Nash issued 2,000 shares of common stock at par value. Cash dividends of $101,600 were declared and paid at the end of the fiscal year. Your answer is partially correct. Prepare a statement of cash flows for Nash Company for the year ended May 31, 2025, using the direct method. (A reconciliation of net income to net cash provided is not required.) (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities NASH COMPANY Statement of Cash Flows For the Year Ended May 31, 2025 v Cash Flows from Operating Activities Cash Received from Customers Cash payments: Cash Payment to Employees Cash Payment for Interest Cash Payment for Other Expenses Cash Payment to Suppliers Cash Payment for Income Taxes Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Plant Assets Cash Flows from Financing Activities Cash Paid for Dividends Statement of Cash Flows For the Year Ended May 31, 2025 V Cash Received from Common Stock Issue Cash Paid to Retire Bonds Payable Cash, June 1, 2024 V V ✓ V V V V V V $ $ 674800 -43300 122800 Nash Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Nash as of May 31, 2025, are as follows. The company is preparing its statement of cash flows. Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant assets Plant assets Less: Accumulated depreciation-plant assets Net plant assets Total assets Nash Company Comparative Balance Sheet As of May 31 Current liabilities Accounts payable Salaries and wages payable Interest payable Total current liabilities Long-term debt Bonds payable Total liabilities Stockholders' equity Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2025 $28,400 75,200 220.600 8.900 333,100 597,800 148.500 449,300 $124,200 506,800 124,700 382,100 $782,400 $719,100 46,800 27,100 198,100 70,000 268,100 370,000 144,300 2024 514,300 $20,100 58.000 251.800 7,100 337,000 $114,900 71,200 25,100 211.200 100,000 311.200 280,000 127.900 407,900 $782,400 $719,100 Sales revenue Cost of goods sold Gross profit Expenses Salaries and wages expense Interest expense Depreciation expense Other expenses Total expenses Operating income Income tax expense Net income 1. 2. Nash Company Income Statement For the Year Ended May 31, 2025 3. 4 5. 6. 7. The following is additional information concerning Nash's transactions during the year ended May 31, 2025. (b) $1,245,200 723,200 522,000 254.100 74.700 23.800 8,100 360,700 161,300 43,300 $118.000 All sales during the year were made on account. All merchandise was purchased on account, comprising the total accounts payable account. Plant assets costing $91,000 were purchased by paying $21,000 in cash and issuing 7,000 shares of stock. The "other expenses" are related to prepaid items. All income taxes incurred during the year were paid during the year. In order to supplement its cash, Nash issued 2,000 shares of common stock at par value. Cash dividends of $101,600 were declared and paid at the end of the fiscal year. Your answer is partially correct. Prepare a statement of cash flows for Nash Company for the year ended May 31, 2025, using the direct method. (A reconciliation of net income to net cash provided is not required.) (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities NASH COMPANY Statement of Cash Flows For the Year Ended May 31, 2025 v Cash Flows from Operating Activities Cash Received from Customers Cash payments: Cash Payment to Employees Cash Payment for Interest Cash Payment for Other Expenses Cash Payment to Suppliers Cash Payment for Income Taxes Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Plant Assets Cash Flows from Financing Activities Cash Paid for Dividends Statement of Cash Flows For the Year Ended May 31, 2025 V Cash Received from Common Stock Issue Cash Paid to Retire Bonds Payable Cash, June 1, 2024 V V ✓ V V V V V V $ $ 674800 -43300 122800

Answer rating: 100% (QA)

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