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Additional data: 1. Depreciation expense was $ 37,625. 2. Dividends declared and paid were $ 43,000. 3. During the year equipment was sold for $
Additional data:
1. | Depreciation expense was $ 37,625. | |
2. | Dividends declared and paid were $ 43,000. | |
3. | During the year equipment was sold for $ 18,275 cash. This equipment cost $ 38,700 originally and had accumulated depreciation of $ 20,425 at the time of sale. |
Further analysis reveals the following.
1. | Accounts payable pertain to merchandise suppliers. | |
2. | All operating expenses except for depreciation were paid in cash. | |
3. | All depreciation expense is in the selling expense category. | |
4. | All sales and purchases are on account. |
Prepare a statement of cash flows for Pina Colada Company using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Presented below are the financial statements of Pina Colada Company Pina Colada Company Comparative Balance Sheets December 31 2017 75,250 43,000 43,000 60,200 129,000 167,700 68,800) (51,600) Assets Cash Accounts receivable 2016 30,100 43,000 Inventory Property, plant, and equipment Accumulated depreciation Total $238,650 $232,200 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 40,850 32,250 17,200 70,950 30,100 81,700 $238,650 $232,200 15,050 36,550 38,700 107,500 Pina Colada Company Income Statement For the Year Ended December 31, 2017 Sales revenue 520,300 376,250 144,050 Cost of goods sold Gross profit Selling expenses $38,700 12.900 51,600 92,450 6,450 86,000 17,200 68,800 Administrative expenses Income from operations Interest expense Income before inc Income tax expense Net income ome taxes Pina Colada Company Statement of Cash Flows eTextbook and Media Compute free cash flow. (Show a negative free cash flow with either a -sign e.g. -15,000 or in parenthesis eg. (15,000)) Free cash flow $
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