Question
1. A. Selected financial statement information and additional data for Company ABC. is presented below: December 31 2013 2014 Cash.......................................................... $52,000 $65,000 Accounts receivable (net)............................
1. A. Selected financial statement information and additional data for Company ABC. is presented below:
December 31
2013 2014
Cash.......................................................... $52,000 $65,000
Accounts receivable (net)............................ 84,000 144,200
Inventory................................................... 158,000 206,600
Land.......................................................... 58,800 21,000
Equipment................................................. 504,000 789,600
TOTAL............................................ $856,800 $1,226,400
Accumulated depreciation......................... $84,000 $115,600
Accounts payable....................................... 50,400 86,000
Notes payable - short-term.......................... 67,200 29,400
Notes payable - long-term........................... 168,000 302,400
Common stock........................................... 420,000 487,200
Retained earnings....................................... 67,200 205,800
TOTAL............................................ $856,800 $1,226,400
Additional data for 2014:
1. Net income is shown on the income statement below
3. Land was sold at its original cost.
4. Dividends of were paid.
5. Equipment was purchased
6. A long-term note was issued.
7. Common stock was issued.
Income Statement
For the year ended December 31, 2014
Sales revenue.. $1,200,000
Cost of goods sold 500,000
Gross profit 700,000
Selling and administrative expenses.. 360,000
Pre-tax operating income 340,000
Income taxes 119,800
Net income$220,200
a. Prepare a balance sheet in proper form. b. Prepare the statement of cash flow using the indirect method c. Prepare the statement of cash flow using the direct method
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