Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A comparative balance sheet and income statement for 2017 are presented below for Southwest Consulting. Complete the statement of cash flows for the company using
A comparative balance sheet and income statement for 2017 are presented below for Southwest Consulting. Complete the statement of cash flows for the company using the direct method. Please make sure your final answer(s) are accurate to 2 decimal places. Additional information regarding the statements: a. Bonds were issued and received $10,500 cash. b. $15,500 cash was received from the sale of a held to maturity investment. c. Equipment was purchased for $44,000 cash. d. Furniture was sold at cost for $40,000 cash. e. Cash dividends were paid. f. Retired 550 common shares for $10 per share. Southwest Consulting Cash Flow Statement For the year ended December 31, 2017 $302,000 Southwest Consulting Income Statement For the year ended December 31, 2017 Sales Operating expenses Cost of goods sold. 151,000 Depreciation expense 11,000 Interest expense 6,475 Amortization expense, patents. 10,500 Remaining expenses 101,200 Income from operations Other revenues and expenses Gain on sale of HTM investments 6,000 Gain on held for trading investments 2,500 Net income 280,175 21,825 8,500 $30,325 Southwest Consulting Balance Sheet As of December 31 Cash Investments (held for trading). Accounts receivable. Prepaid insurance Inventory HTM investments Property, plant and equipment, net. Patents Total assets Accounts payable Accrued expenses payable. Bonds payable Common shares Retained earnings Total liabilities and shareholders' equity. 2017 2016 $30,000 $43,000 45,500 43,000 110,000 107,500 25,000 25,500 110,500 99,500 11,500 21,000 79,500 86,500 21,000 31,500 $433,000 $457,500 $57,000 $47,000 127,500 110,000 103,000 92,500 29,500 35,000 116,000 173,000 $433,000 $457,500
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