The following financial statements were drawn from the records of Matrix Shoes. Balance Sheets As of...
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The following financial statements were drawn from the records of Matrix Shoes. Balance Sheets As of December 31 Assets Cash Accounts receivable. Merchandise inventory. Notes receivable Equipment Accumulated depreciation-equipment Land Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Total liabilities and stockholders' equity Sales revenue Cost of goods sold Gross margin Operating expenses Salaries expense Depreciation expense Utilities expense Year 2 Operating income. Nonoperating items Interest expense Loss on the sale of equipment Net income $ 111,448 58,788 126,254 150,900 (75,641) 86,000 Income Statement For the Year Ended December 31, Year 2 $ 581,790 (288,888) 292,902 $ 457,749 0 $ 41,646 27,575 688 0 0 295,700 92,140 $ 457,749 (188,180) (16,671) (13,000) 75,051 (3,443) (2,430) $ 69,178 Year 1 $ 29,690 68,070 114,230 28,500 257,200 (142,770) 58,000 $ 412,920 Required Analyze the data and prepare a statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. $ 48,190 22,060 1,376 1,890 64,500 239,100 35,804 $ 412,920 Additional Information 1. Sold equipment costing $106,300 with accumulated depreciation of $83,800 for $20,070 cash. 2. Paid a $12,842 cash dividend to owners. Cash flows from operating activities: Cash receipts from customers Cash Payments for: Total cash outflows MATRIX SHOES Statement of Cash Flows For the Year Ended December 31, Year 2 Cash Flows from Investing Activities: Cash Flows from Financing Activities: Ending cash balance The following financial statements were drawn from the records of Matrix Shoes. Balance Sheets As of December 31 Assets Cash Accounts receivable. Merchandise inventory. Notes receivable Equipment Accumulated depreciation-equipment Land Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Total liabilities and stockholders' equity Sales revenue Cost of goods sold Gross margin Operating expenses Salaries expense Depreciation expense Utilities expense Year 2 Operating income. Nonoperating items Interest expense Loss on the sale of equipment Net income $ 111,448 58,788 126,254 150,900 (75,641) 86,000 Income Statement For the Year Ended December 31, Year 2 $ 581,790 (288,888) 292,902 $ 457,749 0 $ 41,646 27,575 688 0 0 295,700 92,140 $ 457,749 (188,180) (16,671) (13,000) 75,051 (3,443) (2,430) $ 69,178 Year 1 $ 29,690 68,070 114,230 28,500 257,200 (142,770) 58,000 $ 412,920 Required Analyze the data and prepare a statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. $ 48,190 22,060 1,376 1,890 64,500 239,100 35,804 $ 412,920 Additional Information 1. Sold equipment costing $106,300 with accumulated depreciation of $83,800 for $20,070 cash. 2. Paid a $12,842 cash dividend to owners. Cash flows from operating activities: Cash receipts from customers Cash Payments for: Total cash outflows MATRIX SHOES Statement of Cash Flows For the Year Ended December 31, Year 2 Cash Flows from Investing Activities: Cash Flows from Financing Activities: Ending cash balance
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Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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