Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6:35 The income statement balance sheets, and additional Information for Video Phones, Inc., are provided. VIDEO PHONES, INC Income Statement For the Year Ended December

image text in transcribed
image text in transcribed
6:35 The income statement balance sheets, and additional Information for Video Phones, Inc., are provided. VIDEO PHONES, INC Income Statement For the Year Ended December 31, 2021 Net sales $3,536,000 Expenses: Cost of goods sold $2,350,000 Operating expenses 938,000 Depreciation expense 35,000 Loss on sale of land 8,800 Interest expense 19,000 Income tax expense 56,000 Total expenses 3,486,800 Net income $ 129,200 int VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 268,888 89,800 105,000 13,920 $211,040 68,000 143,888 6,960 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total Habilities and stockholders' equity 113, eee 218, eee 286,00 (78,600) $1,003, eee 256,000 218,000 (43,600) $ $859,400 $ 73,200 6,8ee 15,800 $ 89,000 11,600 14,8ee 301,200 233,000 380,00 231,200 $1,008,000 380,000 131,000 5859,400 Additional Information for 2021: 1. Purchase investment in bonds for $113,000. 2. Sell land costing $38,000 for only $29,200, resulting in a $8,800 loss on sale of land 3. Purchase $68,000 in equipment by issuing a $68,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $29,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note (List cash outflows and any decrease in cash as negative amounts.) VIDEO PHONES, INC Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile net income to not cash flows from operating activitis Net cash flows from operating activities Cash Flows from Investing Activities

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

Step: 3

blur-text-image

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

Advanced Financial Reporting And Analysis

Authors: John Dunn, Margaret Stewart

1st Edition

0470973609, 9780470973608

More Books

Students also viewed these Accounting questions