Assets ONPOINT INCORPORATED Comparative Balance Sheets June 30, 2021 and 2020 2021 $ 127,700 70,000 2020 $ 74,600 55,000 90,000 65,000 4,500 5,600 267,200 225,200 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 365,200 $ 28,000 7,000 3,800 131,000 (33,000) 121,000 (11,000) $ 335,200 $ 34,000 17,000 4,200 38,800 55,200 35,000 70,000 73,800 125,200 250,000 180,000 41,400 $ 365,200 30,000 $ 335,200 Sales ONPOINT INCORPORATED Income Statement For Year Ended June 30, 2021 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $ 61,000 69,000 $ 699,000 427,000 272,000 $ 130,000 142,000 2,200 144,200 44,140 $ 100,060 a. A $35,000 note payable is retired at its $35,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $60,000 cash. d. Received cash for the sale of equipment that had cost $50,000, yielding a $2,200 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. ONPOINT INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Post-closing Cash flows from operating activities: ONPOINT INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Changes in current operating assets and liabilities