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 $1,800,000 828,000 24,000 7,700 13,500 45,000 $2,886,000 2,718,200 $ 167,800 VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Long-term liabilities: Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Notes payable $196,620 77,700 $119,460 57,000 105,000 132,000 10,080 5,040 102,000 0 207,000 234,000 264,000 207,000 (65,400) (41,400) $897,000 $713,100 $ 63,300 $ 78,000 5,700 14,700 9,400 13,700 279,000 222,000 Stockholders' equity: Common stock 270,000 270,000 Retained earnings 264,300 120,000 Total liabilities and stockholders' equity $897,000 $713,100 Additional Information for 2024: 1. Purchased investment in bonds for $102,000. 2. Sold land for $19,300. The land originally was purchased for $27,000, resulting in a $7,700 loss being recorded at the time of the sale. 3. Purchased $57,000 in equipment by issuing a $57,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $23,500. Required: Prepare the statement of cash flows using the indirect 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.) Cash Flows from Operating Activities: VIDEO PHONES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 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 S 0 $ 0 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 $1,800,000 828,000 24,000 7,700 13,500 45,000 $2,886,000 2,718,200 $ 167,800 VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Long-term liabilities: Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Notes payable $196,620 77,700 $119,460 57,000 105,000 132,000 10,080 5,040 102,000 0 207,000 234,000 264,000 207,000 (65,400) (41,400) $897,000 $713,100 $ 63,300 $ 78,000 5,700 14,700 9,400 13,700 279,000 222,000 Stockholders' equity: Common stock 270,000 270,000 Retained earnings 264,300 120,000 Total liabilities and stockholders' equity $897,000 $713,100 Additional Information for 2024: 1. Purchased investment in bonds for $102,000. 2. Sold land for $19,300. The land originally was purchased for $27,000, resulting in a $7,700 loss being recorded at the time of the sale. 3. Purchased $57,000 in equipment by issuing a $57,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $23,500. Required: Prepare the statement of cash flows using the indirect 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.) Cash Flows from Operating Activities: VIDEO PHONES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 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 S 0 $ 0
Expert Answer:
Answer rating: 100% (QA)
To analyze the financial information provided for Video Phones Incorporated 1 The net income for the year 2024 is 167800 2 The total assets at the end of 2024 are 897000 and the total liabilities and ... 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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