2018 AUSTIN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 94,300 Accounts receivable, net 81,000 Inventory 68,000 Prepaid expenses 5,600 Total current assets 248,900 Equipment 176,000 Accum. depreciation-Equipment (45,000) Total assets $379,900 Liabilities and Equity Accounts payable $ 31,000 Wages payable 6,000 Income taxes payable 4,900 Total current liabilities 41,900 Notes payable (long term) 40,000 Total liabilities 81,900 Equity Common stock, $5 par value 240,000 Retained earnings 58,000 Total liabilities and equity $379,900 $ 39,400 63,000 94,000 7,000 203,400 163,000 (15,000) $351,400 $ 38,000 16,000 5,400 59,400 80,000 139,400 170,000 42,000 $351,400 AUSTIN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $75,000 Other expenses 91,000 Total operating expenses $922,000 564,000 358,000 166,000 192,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,900 196,900 60,270 $ 136,630 Additional Information a. A $40,000 note payable is retired at its $40,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $74,000 cash. d. Received cash for the sale of equipment that had cost $61,000, yielding a $4,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Using the income statement, the comparative balance sheet, and the additional information given above, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the June 30, 2019 balances. View transaction list Journal entry worksheet Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the Cash T-account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Unadjusted AUSTIN INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values. Unadjusted AUSTIN INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities:
