$4$ Homework

Question $6,$ EF$14-24($similar to$)$

HW Score: $30\%,6$ of $20$ points

Part $1$ of $4$

Points: $0$ of $2$

Save

Masterson Exercise Equipment, Inc. reported the following financial statements for $2024$

$($Click the icon to view the income statement.$)$

$($Click the icon to view the comparative balance sheet.$)$

$($Click the icon to view additional information.$)$

Complete the statement one section at a time, beginning with the cash flows from operating activities

Masterson Exercise Equipment, Inc.

Statement of Cash Flows

Year Ended December $31,2024$

Cash Flows from Operating Activities:

Net Income

Adjustments to Reconcile Net Income to Net Cash

Provided by $($Used for$)$ Operating Activities:

Prepare the company's statement of cash flows$-$indirect method$-$for the year ended December $31,2024.$ Assume investments are purchased with cash. $($Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.$)$

Data table

$\backslash$table$[[\backslash$table$[[$Masterson Exercise Equipment, Inc.$],[$Income Statement$],[$Year Ended December $31,2024]]],[$Net Sales Revenue,,$$,711,000],[$Cost of Goods Sold,,,$344,000],[$Gross Profit,,,$367,000],[$Operating Expenses:$],[$Depreciation Expense,$$,46,000,],[$Other Operating Expenses,,$180,000,],[$Total Operating Expenses,,,$226,000],[$Net Income,,$$,141,000]]$

More info

Masterson calculated the following amounts for $2024$

Acquisition value of plant assets, $$87,000$

Payment of dividends, $$88,000.$

Payment of long$-$term notes payable, $$3,000,$

Cash receipt from issuance of common stock, $$12,000.$

Masterson Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $$45,700.$ No cash was received upon disposal.

Data table

$\backslash$table$[[\backslash$table$[[$Masterson Exercise Equipment, Inc.$],[$Comparative Balance Sheet$],[$December $31,2024$ and $2023]]],[,2024,2023],[$Current Assets:$],[],[$Cash$,$$$,21,000$$$,14,000],[$Accounts Receivable,,$54,000,45,000],[$Merchandise Inventory,,$80,000,91,000],[$Long$-$term Assets:$],[$Plant Assets,,$262,800,221,500],[$Accumulated Depreciation$-$Plant Assets,,$(34,800),(34,500)$