Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Could you please help me!!!! It is really urgent!!!!! Pleaseee!!! The comparative balance sheet for The Company appears below: THE COMPANY Comparative Balance Sheet Dec.

Could you please help me!!!! It is really urgent!!!!! Pleaseee!!!

The comparative balance sheet for The Company appears below:

THE COMPANY

Comparative Balance Sheet

Dec. 31, 2023 Dec. 31, 2022

Assets

Cash................................................................................................ $40,000 $12,000

Accounts receivable....................................................................... 5,000 8,000

Inventory........................................................................................ 11,000 7,000

Prepaid expenses............................................................................ 2,000 3,000

Buildings......................................................................................... 20,000 20,000

Accumulated depreciationbuildings........................................... (3,000) (2,000)

Total assets............................................................................... $75,000 $48,000

Liabilities and Stockholders' Equity

Accounts payable........................................................................... $ 2,000 $ 4,000

Long-term note payable................................................................. 13,000 14,000

Common stock................................................................................ 33,000 18,000

Retained earnings........................................................................... 27,000 12,000

Total liabilities and stockholders' equity.................................. $75,000 $48,000

The income statement for the year is as follows:

BASSIE COMPANY

Income Statement

For the Year Ended December 31, 2023

Sales (all on credit)......................................................................... $280,000

Expenses and gains:

Cost of goods sold.................................................................... $199,000

Operating expenses, exclusive of depreciation....................... 42,300

Depreciation expense............................................................... 1,000

Interest expense....................................................................... 1,200

Gain on sale of land.................................................................. (2,500)

Income taxes............................................................................ 9,000

Total expenses and loss...................................................... 250,000

Net income..................................................................................... $ 30,000

Additional Information:

  • Cash dividends of $15,000 were paid during the year.
  • Land costing $15,000 was acquired by the issuance of common stock.
  • The land above was subsequently sold for $17,500 cash.

Required:

Prepare a statement of cash flows for the year ended December 31, 2023 using the indirect method.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

explanin the deforestation and give 2 solotuin for two reasons

Answered: 1 week ago