Cash Flow Statement: The Diversified Portfolio Corp. provides investment advice to customers. A condensed income statement...
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Cash Flow Statement: The Diversified Portfolio Corp. provides investment advice to customers. A condensed income statement for the year ended December 31, 2018 is below: Service Revenue $ 22,250 Costs of Goods Sold 8.000 $ 14,250 Gross Profit Depreciation Expense Selling and Admin. Expenses Interest Expense Income before income taxes 1,600 6,000 400 6,250 2500 $ 3.750 Income Tax Expense Net Income Depreciation expense for the year was $1,600. The following balance sheet information is also available: 12/31/2018 12/31/2017 $3,500 2,400 3,500 Cash $9,600 2,800 Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable (used for operating exp and selling/admin) Interest Payable 2,300 500 200 14,500 12,000 (5,100) (4,500) 2,200 2,400 200 Deferred Service Revenue 250 600 500 800 Income tax payable Note Payable 5,000 Common Stock 10,000 10,000 Retained Earnings 6,250 3,500 Additional Information: Diversified sold a piece of equipment with a book value of $500 for $500 cash. Original cost of the equipment was $1,500 and its accumulated depreciation was $1,000. Dividends of $1,000 were declared and paid. A Note Payable due in 10 years was taken out from the bank during the current year. Prepare the Cash Flow Statement (using the Indirect method and the Direct method) Cash Flow Statement: The Diversified Portfolio Corp. provides investment advice to customers. A condensed income statement for the year ended December 31, 2018 is below: Service Revenue $ 22,250 Costs of Goods Sold 8.000 $ 14,250 Gross Profit Depreciation Expense Selling and Admin. Expenses Interest Expense Income before income taxes 1,600 6,000 400 6,250 2500 $ 3.750 Income Tax Expense Net Income Depreciation expense for the year was $1,600. The following balance sheet information is also available: 12/31/2018 12/31/2017 $3,500 2,400 3,500 Cash $9,600 2,800 Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable (used for operating exp and selling/admin) Interest Payable 2,300 500 200 14,500 12,000 (5,100) (4,500) 2,200 2,400 200 Deferred Service Revenue 250 600 500 800 Income tax payable Note Payable 5,000 Common Stock 10,000 10,000 Retained Earnings 6,250 3,500 Additional Information: Diversified sold a piece of equipment with a book value of $500 for $500 cash. Original cost of the equipment was $1,500 and its accumulated depreciation was $1,000. Dividends of $1,000 were declared and paid. A Note Payable due in 10 years was taken out from the bank during the current year. Prepare the Cash Flow Statement (using the Indirect method and the Direct method)
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Diversified Portfolio Corp Statement of Cashflows Indirect For the period en... View the full answer
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
Posted Date:
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