Use the Financial Statements for Moon Walk Inc. to complete the following questions.

Moon Walk Inc. Comparative Statement of Income for the 12 months ending December 31, 2024

Account	2024	2023	2022
Revenue	1,234,567	1,110,934	1,008,900
Cost of Goods Sold	604,000	609,000	580,000
Gross Profit	630,567	501,934	428,900
Salaries	220,000	200,000	180,000
Rent	60,000	60,000	60,000
Interest Expense	40,000	20,000	20,000
Depreciation Expense	35,000	25,000	22,000
Amortization Expense	12,000	12,000	12,000
Loss/(Gain) on Disposal of Assets	15,000	(20,000)	5,000
Total Operating Expenses	382,000	297,000	299,000
Net Income	248,567	204,934	129,900

Moon Walk Inc Comparative Balance Sheet as of December 31, 2024

Account	2024	2023	2022
Cash	2,384,435	762,141	690,200
Accounts Receivable, net of bad debt allowance	600,000	550,000	700,000
Inventory	450,000	420,000	400,000
Prepaid Expenses	100,000	120,000	110,000
Total Current Assets	3,534,435	1,852,141	1,900,200
Property, Plant, and Equipment , net of depreciation	2,372,000	2,415,000	2,330,000
Intangible Assets, net of amortization	126,000	138,000	150,000
Total Non-current assets	2,498,000	2,553,000	2,480,000
TOTAL ASSETS	6,032,435	4,405,141	4,380,200
Accounts Payable	300,000	360,000	290,000
Interest Payable	80,000	50,000	65,000
Income Taxes Payable	49,714	40,987	25,980
Total Current Liabilities	429,714	450,987	380,980
Bonds Payable	2,000,000	500,000	1,000,000
Total Liabilities	2,429,714	950,987	1,380,980
Common Stock	500,000	500,000	300,000
Additional Paid in Capital	750,000	750,000	650,000
Retained Earnings	2,352,721	2,204,154	2,049,220
Total Shareholders' Equity	3,602,721	3,454,154	2,999,220
TOTAL LIABILITIES + EQUITY	6,032,435	4,405,141	4,380,200

Question1:

Prepare the Statement of Cash Flows for the Period ending December 31, 2023, for Moon Walk Inc. Moon Walk had transactions as follows:

Sold a piece of equipment with an original cost of $120,000. The equipment had accumulated depreciation of $100,000 and was sold for $40,000 cash.

Purchased a piece of equipment for $130,000 cash.

Retired bonds for $500,000 cash.

Issued 200,000 shares of $1 par value common stock for $300,000 cash.

Paid a cash dividend of $50,000

Moon Walk Inc Statement of Cash Flows for the period ending December 31, 2023

Account	Amount
Net Income
Non Cash Expenses
Depreciation
Amortization
Loss/(Gain) on Disposal of Assets
Changes in Current Assets and Liabilities
Accounts Receivable
Inventory
Prepaid Expenses
Accounts Payable
Interest Payable
Income Taxes Payable
Cash provided by(used in) Operations
Proceeds from the Sale of Assets
Purchase of Assets
Cash provided by [used in] Investing Activities
Retirement of Bonds
Proceeds from the Issuance of stock
Dividend Payment
Cash provided by (used in) Financing Activities
Net Increase (Decrease) in Cash
Beginning Cash Balance
Ending Cash Balance

Question

In 2024, Moon Walk had the following additional transactions:

Sold equipment for $25,000 cash

Purchased a vehicle for $32,000 cash

Issued Bonds Payable in exchange for $1,500,000 cash

Paid a cash dividend of $100,000

Answer the following questions related to preparing Moon Walk's Statement of Cash Flows for December 31, 2024.

What is Net Income?

What is Cash Flow Provided by Operations?

What is Cash Flow Used in Investing Activities?

What is Cash Flow Provided by Financing Activities?

What was the Net Increase in Cash?

Did the change in Accounts Receivable Increase or Decrease cash? enter single word Increase or Decrease

Did the change in Income Taxes Payable Increase or Decrease cash? enter single word Increase or Decrease

What were total Non Cash expenses?

Answer rating: 100% (QA)

Answer 1 General guidance The answer provided below has been developed in a clear step by step manner 2 Step By Step Step 1 Cash flow statement It is ... View the full answer