Question: Please answer and explain with solution for my understanding. Will Company's comparative balance sheet and income statement for last year appear below: Statement of Financial
Please answer and explain with solution for my understanding.
Will Company's comparative balance sheet and income statement for last year appear below: Statement of Financial Position Ending Balance Beginning Balance
Cash ........................................................... P 60,000 P 22,000
Accounts receivable .................................. 40,000 54,000
Inventory ................................................... 43,000 61,000
Prepaid expenses ....................................... 22,000 10,000
Long-term investments .............................. 260,000 200,000
Plant and equipment .................................. 480,000 480,000
Accumulated depreciation ....................... (257,000) (222,000)
Total assets ................................................ P648,000 P605,000
Accounts payable ...................................... P 32,000 P 50,000
Accrued liabilities ..................................... 51,000 25,000
Taxes payable ............................................ 34,000 24,000
Bonds payable ........................................... 120,000 160,000
Deferred taxes ........................................... 28,000 16,000
Common stock .......................................... 180,000 150,000
Retained earnings ...................................... 203,000 180,000
Total liabilities and owners' equity ........... P648,000 P605,000
Income Statement
Sales .......................................................... P600,000
Less cost of goods sold ............................. (340,000)
Gross margin ............................................. P260,000
Less operating expenses ............................ (160,000)
Net operating income ................................ P100,000
Less income taxes ..................................... (30,000)
Net income ................................................ P 70,000
The company declared and paid P47,000 in cash dividends during the year. The following questions pertain to the company's statement of cash flows. Required: Prepare statement of Cash Flows.
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