Question: Need the answer and solution for answer a-d Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA.
Need the answer and solution for answer a-d
| Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. | ||||||||
| Financial statements of Harlan Mining Co. for 2019 and 2018 are provided below. | ||||||||
| BALANCE SHEETS | ||||||||
| 12/31/19 | 12/31/18 | |||||||
| Cash | $408,000 | $192,000 | ||||||
| Accounts receivable | 360,000 | 216,000 | ||||||
| Inventory | 384,000 | 480,000 | ||||||
| Property, plant and equipment | $608,000 | $960,000 | ||||||
| Less accumulated depreciation | -320,000 | 288,000 | -304,000 | 656,000 | ||||
| $1,440,000 | $1,544,000 | |||||||
| Accounts payable | $176,000 | $96,000 | ||||||
| Income taxes payable | 352,000 | 392,000 | ||||||
| Bonds payable | 360,000 | 600,000 | ||||||
| Common stock | 216,000 | 216,000 | ||||||
| Retained earnings | 336,000 | 240,000 | ||||||
| $1,440,000 | $1,544,000 | |||||||
| INCOME STATEMENT | ||||||||
| For the Year Ended December 31, 2019 | ||||||||
| Sales revenue | $8,400,000 | |||||||
| Cost of sales | 7,152,000 | |||||||
| Gross profit | 1,248,000 | |||||||
| Selling expenses | $600,000 | |||||||
| Administrative expenses | 192,000 | 792,000 | ||||||
| Income from operations | 456,000 | |||||||
| Other losses | 72,000 | |||||||
| Income before taxes | 384,000 | |||||||
| Income taxes | 96,000 | |||||||
| Net income | $288,000 | |||||||
| The following additional data were provided: | ||||||||
| 1 | Dividends for the year 2019 were $192,000. | |||||||
| 2 | During the year, equipment was sold for $240,000. This equipment cost $352,000 originally and had a book value of $288,000 at the time of sale. | |||||||
| 3 | Depreciation expense, $80,000, is in the selling expense category. | |||||||
| Questions relate to a statement of cash flows (indirect method) for the year ended December 31st, 2019, for Harlan Mining Company. | ||||||||
| Calculate net cash provided by operating activities using the direct method | ||||||||
| a) Cash received from customers = | <-Enter your answer | |||||||
| b) Cash paid to purchase inventory = | <-Enter your answer | |||||||
| c) Cash paid as selling& admin. Expenses = | <-Enter your answer | |||||||
| d) Cash paid as taxes | <-Enter your answer |
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