Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A (Click the icon to view the additional information.) The 2018 income statement and comparative balance sheet of All Wired, Inc. follow: (Click the icon
A (Click the icon to view the additional information.) The 2018 income statement and comparative balance sheet of All Wired, Inc. follow: (Click the icon to view the income statement.) E: (Click the icon to view the comparative balance sheet.) Read the requirements. Requirement 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. (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.) Complete the statement one section at a time, beginning with the cash flows from operating activities. All Wired, Inc. Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities All Wired, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 434,000 201,200 232,800 Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation ExpensePlant Assets Other Operating Expenses Total Operating Expenses Operating Income 79,400 14,300 10,300 104,000 128,800 $ 79,400 14,300 10,300 Salaries Expense Depreciation ExpensePlant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 104,000 128,800 8,000 (21,300) Interest Expense Total Other Income and (Expenses) (13,300) Net Income Before Income Taxes 115,500 19,400 Income Tax Expense $ 96,100 Net Income December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash 15,200 Accounts Receivable 26,800 $ 26,400 79,100 25,600 91,700 Merchandise Inventory Long-term Assets: Land 34,900 Plant Assets 127,410 (22,510) 9,000 115,480 (19,780) 237,200 Accumulated DepreciationPlant Assets $ 272,100 $ Total Assets Liabilities Current Liabilities: $ Accounts Payable Accrued Liabilities 35,600 $ 28,100 30,300 30,200 Long-term Liabilities: 72,000 101,000 Notes Payable Total Liabilities 135,700 161,500 Stockholders' Equity Common Stock, no par 88,500 47,900 Retained Earnings 64,100 11,600 75,700 237,200 Total Stockholders' Equity 136,400 272,100 $ $ Total Liabilities and Stockholders' Equity Additionally, All Wired purchased land of $25,900 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $11,570. The plant acquisition was for cash. 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started