The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES,...
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The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land. Interest expense Income tax expense Total expenses Net income Assets. Current assets: Cash Accounts receivable. Inventory Prepaid rent Long-term assets: Investments Accounts payable Interest payable $2,150,000 898,000 31,000 8,400 17,000 52,000 Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Income tax payable Long-term liabilities: Notes payable $3,336,000 3,156,400 $ 179,600 VIDEO PHONES, INC. Balance Sheets December 31 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2021 $ 273,440 85,400 105,000 12,960 109,000 214,000 278,000 (73,800) $1,004,000 2020 $177,520 64,000 139,000 6,480 0 248,000 214,000 (42,800) $806, 200 $ 69,600 $ 85,000 6,400 15,400 293,000 340,000 279,600 $1,004,000 10,800 14,400 229,000 340,000 127,000 $806, 200 Additional Information for 2021: 1. Purchase investment in bonds for $109,000. 2. Sell land costing $34,000 for only $25,600, resulting in a $8,400 loss on sale of land. Additional Information for 2021: 1. Purchase investment in bonds for $109,000. 2. Sell land costing $34,000 for only $25,600, resulting in a $8,400 loss on sale of land. 3. Purchase $64,000 in equipment by issuing a $64,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $27,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) Cash Flows from Operating Activities: VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: $ 0 0 Cash Flows from Operating Activities: For the Year Ended December 31, 2021 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ $ 0 0 0 0 The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land. Interest expense Income tax expense Total expenses Net income Assets. Current assets: Cash Accounts receivable. Inventory Prepaid rent Long-term assets: Investments Accounts payable Interest payable $2,150,000 898,000 31,000 8,400 17,000 52,000 Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Income tax payable Long-term liabilities: Notes payable $3,336,000 3,156,400 $ 179,600 VIDEO PHONES, INC. Balance Sheets December 31 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2021 $ 273,440 85,400 105,000 12,960 109,000 214,000 278,000 (73,800) $1,004,000 2020 $177,520 64,000 139,000 6,480 0 248,000 214,000 (42,800) $806, 200 $ 69,600 $ 85,000 6,400 15,400 293,000 340,000 279,600 $1,004,000 10,800 14,400 229,000 340,000 127,000 $806, 200 Additional Information for 2021: 1. Purchase investment in bonds for $109,000. 2. Sell land costing $34,000 for only $25,600, resulting in a $8,400 loss on sale of land. Additional Information for 2021: 1. Purchase investment in bonds for $109,000. 2. Sell land costing $34,000 for only $25,600, resulting in a $8,400 loss on sale of land. 3. Purchase $64,000 in equipment by issuing a $64,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $27,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) Cash Flows from Operating Activities: VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: $ 0 0 Cash Flows from Operating Activities: For the Year Ended December 31, 2021 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ $ 0 0 0 0
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Answer rating: 100% (QA)
Ans VIDEO PHONES INC Statement of Cash flows for the year Ended December 31 2021 Cash flows from ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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