The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION
Fantastic news! We've Found the answer you've been seeking!
Question:
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 | ||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 108,900 | $ | 126,800 | ||||
Accounts receivable | 82,000 | 97,000 | ||||||
Inventory | 105,000 | 89,000 | ||||||
Prepaid rent | 6,000 | 3,000 | ||||||
Long-term assets: | ||||||||
Land | 530,000 | 530,000 | ||||||
Equipment | 830,000 | 720,000 | ||||||
Accumulated depreciation | (438,000 | ) | (288,000 | ) | ||||
Total assets | $ | 1,223,900 | $ | 1,277,800 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 109,000 | $ | 94,000 | ||||
Interest payable | 6,900 | 13,800 | ||||||
Income tax payable | 10,000 | 6,000 | ||||||
Long-term liabilities: | ||||||||
Notes payable | 115,000 | 230,000 | ||||||
Stockholders' equity: | ||||||||
Common stock | 750,000 | 750,000 | ||||||
Retained earnings | 233,000 | 184,000 | ||||||
Total liabilities and stockholders' equity | $ | 1,223,900 | $ | 1,277,800 | ||||
Additional Information for 2021:
- Net income is $79,000.
- The company purchases $110,000 in equipment.
- Depreciation expense is $150,000.
- The company repays $115,000 in notes payable.
- The company declares and pays a cash dividend of $30,000.
Required:
Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
|
Related Book For
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
Posted Date: