Question
Below are selected account balances at June 30, 20X1 and 20X2 for NIKE Inc. 20x2 ($) 20x1 ($) Cash 236,000 61,000 Accounts Receivable 8,000 12,000
Below are selected account balances at June 30, 20X1 and 20X2 for NIKE Inc.
20x2 ($) 20x1 ($)
Cash 236,000 61,000
Accounts Receivable 8,000 12,000
Prepaid Insurance 5,000 10,000
Inventory 71,000 60,000
Accounts payable 7,000 10,000
Interest payable 6,000 1,000
Unearned revenue 17,500 12,500
Income taxes payable 5,000 5,000
Land 450,000 0
Equipment 339,000 400,000
Accumulated Depreciation-Equip. 120,000 130,000
The following is the draft Statement of Comprehensive Income
Sales revenue $480,000
Cost of goods sold 268,000
Gross profit 212,000
Loss on sale of equip 10,000
Expenses
Salaries and wages 51,000
Depreciation 9,200
Rent 5,800
Interest 13,200
Income tax 11,800 91,000
Net Income Operations $111,000
Net Comprehensive Income $172,000
Other financial information in 20x2 for NIKE Inc. is presented below:
- Bought investment securities for $12,000 cash.
- Borrowed $20,000 on a three-year notes payable (3%), on January 1, 20x2. Interest to be paid annually on January 1.
- Sold machinery for cash and recorded a loss of $10,000 on the sale. This machinery was listed at gross amount of $100,000.
- During the fiscal year 20x2, NIKE purchased land for $450,000. The purchase was financed by a bank loan of $450,000.
- The difference between Net income Operations and Net Comprehensive Income is from an unrealized increase in financial assets classified as FVOCI.
Please make a statement of cash flows.
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