Completed Journal entries, but stuck with Direct and Indirect methods.

Direct method

Indirect method

$ 1,146,000 701,000 445,000 LAUDERDALE INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 97,000 Other expenses 113,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 210,000 235,000 9,200 244,209 74,750 $ 169,450 Additional Information a. A $37,000 note payable is retired at its $37,000 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 $95.000 cash. d. Received cash for the sale of equipment that had cost $79,000. yielding a $9,200 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. General Requirement General Indirect Journal Trial Balance Direct Method Ledger Method Prepare the Statement of cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the Cash T- account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Use the following financial statements and additional information. 2018 LAUDERDALE INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 83,900 Accounts receivable, net 76,000 Inventory 66,000 Prepaid expenses 6,500 Total current assets 232,400 Equipment 212,000 Accumulated depreciation-Equipment (54,000) Total assets $ 390,400 Liabilities and Equity Accounts payable $ 30,000 Wages payable 7,000 Income taxes payable 4,000 Total current liabilities 41,000 Notes payable (long term) 38,000 Total liabilities 79,000 Equity Common stock, $5 par value 279,000 Retained earnings 41,400 Total liabilities and equity $ 390,400 $ 15,300 59,000 92,000 8,100 174,400 196,000 (18,000) $ 352,400 $ 36,000 17,000 4,400 57,400 75,000 132,400 190,000 30,000 $ 352,400 Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Using the income statement, the comparative balance sheet, and the additional Information given above, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the June 30, 2019 balances. No Date Account Title Debit Credit June 30 Cash 1,129,000 Accounts receivable, net 17,000 Sales 1,146,000 1 2 June 30 701,000 6,000 Cost of goods sold Accounts payable Inventory Cash OOO 26,000 681,000 97,000 3 June 30 Depreciation expense Accumulated depreciation - Equipment 97,000 OO OOOO 4 June 30 113,000 10,000 Other expenses Wages payable Prepaid expenses Cash 1,600 121,400 5 June 30 27,200 61,000 Cash Accumulated depreciation - Equipment Equipment Gain on sale of equipment 79.000 9,200 Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the Cash T- account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Post-closing LAUDERDALE INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash received from customers $ 1,129,000 Cash paid for merchandise (681,000) Cash paid for operating expenses (121,400) Cash paid for income taxes (75,150) $ 251,450 Net cash provided by operating activities Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment 27.200 (95,000) (67.800) Net cash used by investing activities Cash flows from financing activities: Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 80,000 (37,000) (158,050) $ Net canh used by financing activities Net increase in cash Cash balance at prior year-end Cash balance at current year and (116,050) 68,600 15,300 83,000 $ Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values. Post-closing LAUDERDALE INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash $ 169,450 Changes in current operating assets and liabilities Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable (10,000) (400) $ Net cash provided by operating activities Net cash provided by operating activities, using the direct method: (10,400) 159,050 251,450 $