The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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
Expert Answer:
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:
Students also viewed these accounting questions
-
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. Additional Information for 2015: 1. Purchase investment in bonds for $115,000. 2. Sell land...
-
The income statement, balance sheet, and additional information for Virtual Gaming Systems are provided. Additional Information for 2012: 1. Purchase additional investment in stocks for $85,000. 2....
-
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.)
-
The programming language is Java and all of the Classes I was given are in bold. ALIEN CLASS import imagePackage.RasterImage; import java.awt.BasicStroke; import java.awt.Color; import...
-
The board of directors declared cash dividends totaling $260,000 during the current year. The comparative balance sheet indicates dividends payable of $74,500 at the beginning of the year and $65,000...
-
The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are...
-
Draw an ogive for the frequency distribution in Example 2. Data from Example 2 Using the frequency distribution constructed in Example 1, find the midpoint, relative frequency, and cumulative...
-
Whirlpool manufactures and sells home appliances under various brand names. IBM develops and manufactures computer hardware and offers related technology services. Target Stores operates a chain of...
-
Describe the behaviours that individual team members can engage in that positively impact overall team effectiveness.
-
Your parents are considering investing in Apple Inc. common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Financial statements of Apple are available...
-
4. The atomic numbers of elements, U, V, W and X are 13, 14, 16 and 17 respectively. Which one of the elements will react with oxygen to form an ionic compound? (Atomic number of oxygen is 8) X A. B....
-
What are the alternative methods of accounting for a contingent consideration in a business combination?
-
What is the differential reporting option for the goodwill impairment test?
-
The requirements in the Quran helped to develop an accounting system for the early Islamic State. Explain the main procedures that were developed and applied by government authorities and individual...
-
Write down what you think the following advertisement means: Eight out of ten owners said their cats prefer Whiskas.
-
How does differential reporting impact on the accounting for strategic investments?
-
A new, revolutionary battery has come on the market. There are two firms producing the battery competing in quantities. The demand for the battery is p = 800 - 4Q, where Q = 9 +92. To produce a...
-
Wilsons Auto Repair ended 2011 with Accounts Receivable of $85,000 and a credit balance in Allowance for Uncollectible Accounts balance of $11,000. During 2012, Wilsons Auto Repair had the following...
-
Describe the events that correspond to the following transactions. Debit Credit ...20,000 30,000 10,000 a. SupplieS Cash 20,000 30,000 10,000 b. Accounts Receivable c. Accounts Payable Cash
-
If University Hero initially records an expense incorrectly as an asset, how does this mistake affect the income statement and the balance sheet?
-
Calculate the future value of the following singleamounts. Initial Investment Anual Rate Interest Compounded Period Invested 2. 3. $8,000 6,000 9,000 10% 12 Annually Semiannually Quarterly 7 years 4...
-
When a honeybee flies through the air, it develops a charge of +17 pC. How many electrons did it lose in the process of acquiring this charge?
-
Falling raindrops frequently develop electric charges. Does this create noticeable forces between the droplets? Suppose two 1.8 mg drops each have a charge of +25 pC; these are typical values. The...
-
A housefly walking across a surface may develop a significant electric charge through a process similar to frictional charging. Suppose a fly picks up a charge of +52 pC. How many electrons does it...
Study smarter with the SolutionInn App