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Instructions

AC $212$

Assignment #$9$

Statement of Cash Flows

The following information is available for the ABC Co$.$

Misc. Data

Sold equipment for $$27,000$ cash.

Purchased equip. costing $$132,000$ with $$35,000$ cash and $$97,000$ trade in old equip.

Borrowed $$6,000$ cash by signing a note payable.

Paid $$41,000$ cash to reduce long$-$term notes payable.

Issued $1,800$ shares of common stock at $$10$ per share.

Declared and paid $$9,000$ cash dividends.

ABC Corp.

Comparative Balance Sheet

December $31,2023$

$2023$

$2022$

Assets

Current Assets

Cash

$$944,000$

$$70,000$

Accounts Receivable

$$71,000$

$$83,200$

Merchandise Inventory

$$245,000$

$$266,000$

Prepaid Expenses

$$13,500$

$$18,000$

Plant Assets

Equipment

$$269,400$

$$210,000$

Accumulated Depreciation $($Equipment$)$

$($$$125,000)$

$($$$100,000)$

Total Assets

$$1,417,900$

$$547,200$

Liabilities and Equity

Current Liabilities

Accounts Payable

$$18,500$

$$105,200$

Long$-$Term Liabilities

Notes Payable

$$85,000$

$$73,000$

Equity

Common Stock, $$10$ Par

$$218,000$

$$200,000$

Contributed Capital

$$18,000$

$$0$

Retained Earnings

$$1,078,400$

$$169,000$

Total Liabilities and Equity

$$1,417,900$

$$547,200$

ABC Corp.

Income Statement

For the Year Ended December $31,2023$

Sales

$$1,750,000$

Cost of Goods Sold

$($$$425,000)$

Gross Profit

$$1,325,000$

Operating Expenses

Depreciation Expense

$$41,000$

Other Expenses

$$345,000$

Total operating expenses

$($$$386,000)$

Other gains $($losses$)$

Loss on Sale of Equipment

$($$$2,000)$

Income before taxes

$$937,000$

Income taxes

$$23,000$

Net Income

$$914,000$

Required:

$1.$ Prepare the Statement of Cash Flows.