The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. Net sales...
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The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. Net sales Expenses: VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $1,850,000 838,000 25,000 7,800 14,000 46,000 $2,936,000 2,780,800 $ 155,200 VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 193,480 78,800 105,000 10,320 $127,840 58,000 133,000 5,160 103,000 0 208,000 236,000 266,000 208,000 (66,600) (41,600) $898,000 $726,400 $ 64,200 $ 79,000 5,800 14,800 9,600 13,800 281,000 223,000 280,000 280,000 252,200 $898,000 121,000 $726,400 Additional Information for 2024: 1. Purchased investment in bonds for $103,000. 2. Sold land for $20,200. The land originally was purchased for $28,000, resulting in a $7,800 loss being recorded at the time of the sale. 3. Purchased $58,000 in equipment by issuing a $58,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $24,000. Required: Prepare the statement of cash flows for Video Phones, Incorporated, using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) VIDEO PHONES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in bonds Proceeds from sale of land Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends (103,000) $ 0 (103,000) (24,000) Net cash flows from financing activities (24,000) Net increase in cash Cash at the beginning of the period Cash at the end of the period $ 0 Note: Noncash Activities Purchase equipment by issuing a note payable $ 58,000 The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. Net sales Expenses: VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $1,850,000 838,000 25,000 7,800 14,000 46,000 $2,936,000 2,780,800 $ 155,200 VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 193,480 78,800 105,000 10,320 $127,840 58,000 133,000 5,160 103,000 0 208,000 236,000 266,000 208,000 (66,600) (41,600) $898,000 $726,400 $ 64,200 $ 79,000 5,800 14,800 9,600 13,800 281,000 223,000 280,000 280,000 252,200 $898,000 121,000 $726,400 Additional Information for 2024: 1. Purchased investment in bonds for $103,000. 2. Sold land for $20,200. The land originally was purchased for $28,000, resulting in a $7,800 loss being recorded at the time of the sale. 3. Purchased $58,000 in equipment by issuing a $58,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $24,000. Required: Prepare the statement of cash flows for Video Phones, Incorporated, using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) VIDEO PHONES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in bonds Proceeds from sale of land Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends (103,000) $ 0 (103,000) (24,000) Net cash flows from financing activities (24,000) Net increase in cash Cash at the beginning of the period Cash at the end of the period $ 0 Note: Noncash Activities Purchase equipment by issuing a note payable $ 58,000
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