Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cleancarpet Vacuums sells vacuum accessories. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below. Cleancarpet Vacuums Balance

Cleancarpet Vacuums sells vacuum accessories. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below. Cleancarpet Vacuums Balance Sheet As at November 30 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Prepaid Expenses Total Current Assets Noncurrent Assets Land 2018 2017 $171,785 $58,000 $79,200 $93,400 $212,000 $194,500 $12,900 $12,900 $475,885 $358,800 $39,000 Equipment $325,000 $325,000 Less: Accumulated Depreciation $-26,700 $-23,200 Total Noncurrent Assets $298,300 $340,800 Total Assets Liabilities $774,185 $699,600 Current Liabilities Accounts Payable $52,700 $45,400 Notes Payable, Current Portion $9,900 $9,900 Total Current Liabilities $62,600 $55,300 Notes Payable, Long-Term Portion $65,100 $75,000 Total Liabilities $127,700 $130,300 Stockholders' Equity Common Stock $141,000 $141,000 Retained Earnings $505,485 $428,300 Total Stockholders' Equity $646,485 $569,300 Total Liabilities and Equity $774,185 $699,600 Additional Information: During 2018, land was sold for a gain of $7,100. There was no purchase of equipment throughout the year. Cleancarpet Vacuums Income Statement For the Year Ended November 30, 2018 Sales Cost of Goods Sold Gross Profit $570,000 $342,000 $228,000 Operating Expenses Depreciation Expense $3,500 Other Operating Expenses $66,700 Total Operating Expenses $70,200 Income from Operations $157,800 Other Revenue Gain on Sale of Land $7,100 Income before Income Tax $164,900 Income Tax $57,715 Net Income $107,185 Prepare the statement of cash flows using the direct method. Assume accounts payable is only for the purchase of merchandise inventory. Do not show the reconciliation schedule of net income with net cash provided (used) by operating activities at the bottom of the statement of cash flows. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash. Cleancarpet Vacuums Cash Flow Statement For the Year Ended November 30, 2018 Cash Flow from Operating Activities Cash Receipts Cash Received from Customers Cash Payments Payments for Merchandise Inventory Payments for Other Operating Expenses Payments for Income Taxes Total Cash Payments Net Cash Provided (Used) by Operating Activities Cash Flow from Investing Activities Sale of Land Net Cash Provided (Used) by Investing Activities Cash Flow from Financing Activities Payment of Notes Payable Payment of Cash Dividend Net Cash Provided (Used) by Financing Activities Net Increase (Decrease) in Cash Cash at the Beginning of the Year Cash at the End of the Year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Strayer University

Authors: Strayer University

3rd Custom Edition

0077234804, 978-0077234805

More Books

Students also viewed these Accounting questions