The company shows the following balances for certain current assets and current liabilities accounts at January 1,
Question:
The company shows the following balances for certain current assets and current liabilities accounts at January 1, 2021 and December 31, 2021.
Account | Jan 1 | Dec 31 |
Inventory | 1,500 | 21,200 |
Accounts receivable | 6,500 | 22,600 |
Accounts payable | 12,000 | 46,000 |
Salaries payable | 12,600 | 18,000 |
Taxes payable | 17,000 | 16,000 |
During the year, the company obtained a net income of $132,000
This net income includes the loss of $21,000 obtained in the sale of a plant asset. This asset was sold for a total price of $54,000,
Besides this, the company had recorded during year 2021 a depreciation expense of $34,000.
Also, during the year 2021 the company paid dividends for $20,000 to its stockholders and issued 10% preferred stocks for a total amount of $90,000. The preferred stocks dividends have been paid on December 31, 2021.
During year 2021, the company repaid a note payable for $19,000.
On January 1st, 2021, the balance of the cash account was $227,000
1.- Prepare a statement of cash flow separating cash flows from operating, investing and financing activities (30 points) 2.- Calculate the balance of the cash account at December 31.
2. Calculate the balance of the cash account at December 31.
(I KNOW ITS ONLY 1 QUESTION PER POST BUT THEY ARE HEAVILY LINKED)
please answer asap! Thank you, have a blessed day
Interpreting and Analyzing Financial Statements
ISBN: 978-0132746243
6th edition
Authors: Karen P. Schoenebeck, Mark P. Holtzman