Prepare CFO under the DIRECT method using the data set of problem.

a. P4-48. Classify interest income as CFO

b. P4-52

  

Transcribed Image Text:

ARCTIC COMPANY Income Statement For Year Ended December 31, 2013 Sales $728,000 Cost of goods sold Wages expense. Advertising expense Depreciation expense. Interest expense $534,000 190,000 31,000 22,000 18,000 Gain on sale of land. (25,000) 770,000 Net loss $ (42,000) ARCTIC COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash... $ 49,000 42,000 107,000 10,000 360,000 (78,000) $ 28,000 50,000 113,000 13,000 222,000 (56,000) Accounts receivable Inventory Prepaid advertising. Plant assets...... ..... Accumulated depreciation Total assets .. $490,000 $370,000 Liabilities and Stockholders' Equity Accounts payable.. Interest payable.. Bonds payable. . Share capital. Retained earnings. $ 17,000 $ 31,000 ... 6,000 200,000 245,000 - - 245,000 94,000 52,000 (30,000) Treasury stock.... Total liabilities and equity... $490,000 S370,000 ARCTIC COMPANY Income Statement For Year Ended December 31, 2013 Sales $728,000 Cost of goods sold Wages expense. Advertising expense Depreciation expense. Interest expense $534,000 190,000 31,000 22,000 18,000 Gain on sale of land. (25,000) 770,000 Net loss $ (42,000) ARCTIC COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash... $ 49,000 42,000 107,000 10,000 360,000 (78,000) $ 28,000 50,000 113,000 13,000 222,000 (56,000) Accounts receivable Inventory Prepaid advertising. Plant assets...... ..... Accumulated depreciation Total assets .. $490,000 $370,000 Liabilities and Stockholders' Equity Accounts payable.. Interest payable.. Bonds payable. . Share capital. Retained earnings. $ 17,000 $ 31,000 ... 6,000 200,000 245,000 - - 245,000 94,000 52,000 (30,000) Treasury stock.... Total liabilities and equity... $490,000 S370,000

Answer rating: 100% (QA)

Cash flow statement for image 1 Cash Flow Statement Direct Method Cash flow from Operating Activitie... View the full answer