Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Healthcare Fraud Auditing And Detection Guide

Authors: Rebecca S. Busch

1st Edition

0470127104, 978-0470127100

More Books

Students also viewed these Accounting questions