Question
Below are the financial statements of Meteor Company: Meteor Company Income Statements Sales, net Cost of goods sold Gross profit Operating expenses Operating income Interest
Below are the financial statements of Meteor Company: Meteor Company Income Statements Sales, net Cost of goods sold Gross profit Operating expenses Operating income Interest expense Interest before taxes Income taxes Net income For the Year Ended January 31, 2028 $152,000 61,000 91,000 45,000 46,000 5,000 41,000 13,000 $28,000 Meteor Company Balance Sheets January 31 2028 2027 Cash $11,000 $6,000 Accounts receivable, net 22,000 17,000 Inventory 31,000 37,000 Prepaid insurance 6,500 5,000 Property, plant and equipment 49,000 45,000 Accumulated depreciation (15,500) (13,000) Total assets $104,000 $97,000 Accounts payable $13,000 $12,000 Salaries payable 7,200 9,400 Dividends payable 1,800 1,100 Income taxes payable 5,000 9,000 Bank loan payable 6,000 11,500 Common shares 9,000 5,000 Retained earnings 62,000 49,000 Total liabilities and shareholders' equity $104,000 $97,000 Additional information: 1) Operating expenses are composed of: Depreciation $7,000; Salaries $25,000; Gain on Sale of Equipment $5,000; Other operating expenses $18,000. 2) Other operating expenses are cash expenses. 3) Equipment was purchased during the year for $12,000 cash. 4) Equipment was sold for cash during the year. The original cost of the equipment was $8,000 and the accumulated depreciation was $4,500. 5) Dividends were declared and paid during the year. Required: Prepare a cash flow statement for the year ended January 31, 2028 using the direct method and indirect method
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