prepare cash flow statement with direct and indirect method

Washington irving, Inc. Comparative Statements of Comprehensive Income For the Year Ending January 31, 2018 Gross sales 2017 3,870,250.00 3,250,000.00 275,000.00) 5 (150,000.00) 3,595,250.00 3,100,000.00 2016 Less: Sales returns (1) Net sale Cost of goods sold Gross profit 5 (2,260,890.00)$(,850,000.00) S 1,334,360.00 5 1.250,000.00 Operating expenses Selling expenses- General and administrative expenses Research and development expenses S 526,800.00 $ 425,000.00 $ 382,500.00 279,300.00 $ 75,000.00$ 125,000.00 $ 60,000.00 200,000.00 425,000.00 $ 365,000.00 5 60,872.40 $ $24,890.00 $ 5 1,555,062.40 $ 1394, 800.00 Goodwill impairment Depreciation expense Amortization expense (leases) Bad debts expense Total operating expenses Operating income (220,702.40) S (144,800.00) Other income (expensel Interest and dividend revenue $ 159,800.00 126,500.00 Gain (loss)on sale of Ts investments Gain (loss) on sale of property Unrealized holding gain (loss) on TS investments $ (1,250.00) $ $(12,500.00)$ 165,000.00 $12,590.00 $ 18,750.00 $ (101,287.60) $ (90,650.00) Interest expense Total other income (expense), net $57,352.40 219,600.00 $ (163,350.00) $ 74,800.00 Income before income taxes Income tax expense (benefit) Net income Other Comprehensive Income Defined benefit plans, net Unrealized holding gain (loss) on AFS investments Comprehensive income (loss) $ 118,900.00) (135,900.00) S 78,650.00 $ 32.500.00 780 Washington lrving, Inc. Comparative Balance Sheets As of January 31, 2018 2012 2016 Assets Current Assets: Cash and cash equivalents Accounts receivable (Net) v 754,535.50 $ 469,037.50 257,070.00 233,450.00 113s $ 1,797,510.00 1,488,600.0o 30 Inventory Income taxes receivable Notes receivable 3,477.00 $ $ 311,700.00$ 339,200.00 tsa. 995,090.00 1,068,750.00 340 Total current assets 4,119,382.50 3,599,037.50 s103 Non-current Assets Property, plant, and equipment (Net) $ 12,193,000.00 12,700,000.00 50 $205,420.97 $ $ 3,709,800.00 3,631,150.00 650 $ 2,300,000.00$ 2,360,000.00 26,085.50 Right of-use asset Investments Goodwill and intangible assets as42.sa Deferred income taxes Total non-current assets Total Assets s 22,553,688.97 22,290,187.50 Liabilities and Equity Current Liabilities Accounts payable Notes payable Income taxes payable Current lease payable Current maturity of long-term debt Total current liabilities $ 242,100.00$230,100.00 $ 258,300.00 280,900.00 2260 $ 3,477.00 2506 72,500.00 $ 256,900.00 $ S 829,800.00 $ 514,477.00 256900 Non-current Liabilities Long-term debt (net) $4,574,310.00 4,861,100.00 $ 6,302,590.00 $ 6,151,130.00 $ 132,920.97 $ Pensions Leases Payable Deferred income taxes $ 51,860.00 $ 47,270.00 5 $50,000.00 $ $21,000.00$ 11,132,680.97$11,059,500.00 Liability-RSU Plan Liability - Potential Additional Tax Total noncurrent liabilities 11,962,480.97 11,573,977.00 $ 14,972.50 14,897.50 $ 10,906,590.00 10,829,790.00 $ (158,024.50) $ 3,603.00 $(172,330.00) (132,080.00) Total Liabilities Common Stock, $0.01 par value Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total Equity Total Liabilities and Equity 10,591,208.00 10,716,210.50 22,553,688.97$ 22,290,187.50 Washington Irving, Ine eatements of Equity for the Year Ending lanuary 33, 2017 Balance at January 31, 2018 15,000.00 43,267.00) 48,620.00 630 00) Other comprehensive income Poss) Issuance ofcommon stock (103,400 00) 72.5o $ (175.00) $ 5,240.00 (100,450.00) 25,000.00s Cash di Bafance at January 31, 2017 Net 4,89 132,080 ncome Other comprehensive income floss) Issuance ofcommon stock 159,37730) $ 40,250.00) 100.00 25.00) 2,400.00S (10,600.00) $ 25,000.00 Purchase of Cash dividends declared on common stock5 Balance at January 31, 2018 Note: on sale of TS investm ents is for securities originally purchased for $40,000 and sold for 585,000 $32,000 ofinterest revenue is nontaxable Cash saleswere 53,265,900, therest were sales on account The deferred tax iabillity is due to differences in tax to book ccounts payable are all rel No new long-term debt was issued during the current liabilities payable, excepting income taxes payable G&A includes pention expense of $85,410 Contributions to pension plan assets of $52,350 were made this year expenses include $50,000in RSUs payablein either equity or cesh and $25,000 payable only in equity $85,260 ofthereturns were for sales on account Leases have a four year lease term with one payment due immediately and then due at Feb 1 of each year thereater Assume that the goodwill on the balance sheet is NEVER tax deductible and ignore all other temporary differences The loss on the sale of property is for PP&Ewhich was sold for $289,500 S 40,000.00 Proceeds: 85,000.00 BV: Nontax Re $ 32,000.00 Cash Sales $ 3,265,900.00 Pension & $ 85,410.00 Contributi $52,850.00 Liab. $ 50,000.00 Equity 25,000.00 AR Return: $85,260.00 Nontax Im $ 60,000.00 PPE Proce $ 289,500.00 Washington irving, Inc. Comparative Statements of Comprehensive Income For the Year Ending January 31, 2018 Gross sales 2017 3,870,250.00 3,250,000.00 275,000.00) 5 (150,000.00) 3,595,250.00 3,100,000.00 2016 Less: Sales returns (1) Net sale Cost of goods sold Gross profit 5 (2,260,890.00)$(,850,000.00) S 1,334,360.00 5 1.250,000.00 Operating expenses Selling expenses- General and administrative expenses Research and development expenses S 526,800.00 $ 425,000.00 $ 382,500.00 279,300.00 $ 75,000.00$ 125,000.00 $ 60,000.00 200,000.00 425,000.00 $ 365,000.00 5 60,872.40 $ $24,890.00 $ 5 1,555,062.40 $ 1394, 800.00 Goodwill impairment Depreciation expense Amortization expense (leases) Bad debts expense Total operating expenses Operating income (220,702.40) S (144,800.00) Other income (expensel Interest and dividend revenue $ 159,800.00 126,500.00 Gain (loss)on sale of Ts investments Gain (loss) on sale of property Unrealized holding gain (loss) on TS investments $ (1,250.00) $ $(12,500.00)$ 165,000.00 $12,590.00 $ 18,750.00 $ (101,287.60) $ (90,650.00) Interest expense Total other income (expense), net $57,352.40 219,600.00 $ (163,350.00) $ 74,800.00 Income before income taxes Income tax expense (benefit) Net income Other Comprehensive Income Defined benefit plans, net Unrealized holding gain (loss) on AFS investments Comprehensive income (loss) $ 118,900.00) (135,900.00) S 78,650.00 $ 32.500.00 780 Washington lrving, Inc. Comparative Balance Sheets As of January 31, 2018 2012 2016 Assets Current Assets: Cash and cash equivalents Accounts receivable (Net) v 754,535.50 $ 469,037.50 257,070.00 233,450.00 113s $ 1,797,510.00 1,488,600.0o 30 Inventory Income taxes receivable Notes receivable 3,477.00 $ $ 311,700.00$ 339,200.00 tsa. 995,090.00 1,068,750.00 340 Total current assets 4,119,382.50 3,599,037.50 s103 Non-current Assets Property, plant, and equipment (Net) $ 12,193,000.00 12,700,000.00 50 $205,420.97 $ $ 3,709,800.00 3,631,150.00 650 $ 2,300,000.00$ 2,360,000.00 26,085.50 Right of-use asset Investments Goodwill and intangible assets as42.sa Deferred income taxes Total non-current assets Total Assets s 22,553,688.97 22,290,187.50 Liabilities and Equity Current Liabilities Accounts payable Notes payable Income taxes payable Current lease payable Current maturity of long-term debt Total current liabilities $ 242,100.00$230,100.00 $ 258,300.00 280,900.00 2260 $ 3,477.00 2506 72,500.00 $ 256,900.00 $ S 829,800.00 $ 514,477.00 256900 Non-current Liabilities Long-term debt (net) $4,574,310.00 4,861,100.00 $ 6,302,590.00 $ 6,151,130.00 $ 132,920.97 $ Pensions Leases Payable Deferred income taxes $ 51,860.00 $ 47,270.00 5 $50,000.00 $ $21,000.00$ 11,132,680.97$11,059,500.00 Liability-RSU Plan Liability - Potential Additional Tax Total noncurrent liabilities 11,962,480.97 11,573,977.00 $ 14,972.50 14,897.50 $ 10,906,590.00 10,829,790.00 $ (158,024.50) $ 3,603.00 $(172,330.00) (132,080.00) Total Liabilities Common Stock, $0.01 par value Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total Equity Total Liabilities and Equity 10,591,208.00 10,716,210.50 22,553,688.97$ 22,290,187.50 Washington Irving, Ine eatements of Equity for the Year Ending lanuary 33, 2017 Balance at January 31, 2018 15,000.00 43,267.00) 48,620.00 630 00) Other comprehensive income Poss) Issuance ofcommon stock (103,400 00) 72.5o $ (175.00) $ 5,240.00 (100,450.00) 25,000.00s Cash di Bafance at January 31, 2017 Net 4,89 132,080 ncome Other comprehensive income floss) Issuance ofcommon stock 159,37730) $ 40,250.00) 100.00 25.00) 2,400.00S (10,600.00) $ 25,000.00 Purchase of Cash dividends declared on common stock5 Balance at January 31, 2018 Note: on sale of TS investm ents is for securities originally purchased for $40,000 and sold for 585,000 $32,000 ofinterest revenue is nontaxable Cash saleswere 53,265,900, therest were sales on account The deferred tax iabillity is due to differences in tax to book ccounts payable are all rel No new long-term debt was issued during the current liabilities payable, excepting income taxes payable G&A includes pention expense of $85,410 Contributions to pension plan assets of $52,350 were made this year expenses include $50,000in RSUs payablein either equity or cesh and $25,000 payable only in equity $85,260 ofthereturns were for sales on account Leases have a four year lease term with one payment due immediately and then due at Feb 1 of each year thereater Assume that the goodwill on the balance sheet is NEVER tax deductible and ignore all other temporary differences The loss on the sale of property is for PP&Ewhich was sold for $289,500 S 40,000.00 Proceeds: 85,000.00 BV: Nontax Re $ 32,000.00 Cash Sales $ 3,265,900.00 Pension & $ 85,410.00 Contributi $52,850.00 Liab. $ 50,000.00 Equity 25,000.00 AR Return: $85,260.00 Nontax Im $ 60,000.00 PPE Proce $ 289,500.00