Create a Cashflow Statement using the Direct Method
Income Statement Revenue Less Cost of Goods Sold Gross Profit Administrative Costs Depreciation Expense Equity Oops Construction Earnings Interest Expense Gain (Loss) on Sale of Equipment Net Income 2XX7 $ 920,000 $ (620,000) $ 300,000 $ (195,000) $ (75,000) $ 90,000 $ (38,748) $ 2,000 $ 83,252 Stmt of Retained Earnings Beginning Retained Earnings Add: Net Income Less: Stock Dividends Distributed Less: Dividends Declared and Paid Ending Retained Earnings $ $ $ $ $ 2XX7 4,442 83,252 (30,000) (50,000) 7,694 2XX6 2XX7 Balance Sheet Assets Cash Accounts Receivable Inventory Total Current Assets $ 64,700$ 130,300 $ 90,000 $ 75,000 $ 125,000 $ 140,000 $ 279,700$ 345,300 Equipment Less Accumulated Depreciation Buildings Less Accumulated Depreciation $ 190,000 $ 180,000 $ (104,500) $ (133,000) $ 290,000 $ 500,000 $ (135 000 $ (172 500) Buildings Less Accumulated Depreciation Invest. Securities Avail. for Sale Subsidiary - Oops Construction Total Long-Term Assets Total Assets $ 290,000 $ 500,000 $ (135,000) $ (172,500) $ 28,000 $ 32,000 $ 312,000 $ 362,000 $ 580,500 $ 768,500 $ 860,200 $ 1,113,800 Liabilities Short-term Credit Line Accounts Payable Total Current Liabilities $ 8,000 $ $ 64,658 $ $ 72,658$ 13,270 85,436 98,706 Bonds Payable Less Bond Discount Long-Term Notes Payable Mortgages Payable Deferred Tax Liabilitiy Total g-Term Liabilities Total Liabilities $ 100,000 $ $ (3,500) $ $ 244,000 $ $ 198,000 $ $ 5,000 $ $ 543,500 $ $ 616,158$ 100,000 (2,800) 360,600 185,000 3,000 645,800 744,506 Stockholder's Equity Common Stock ($1 par) $ 24,600 $ 34,600 Stockholder's Equity Common Stock ($1 par) Additional Paid-in Capital Retained Earnings Other Comprehensive Income Less Treasury Stock Total Stockholder's Equity Total Liabilities and Equity $ 24,600$ 34,600 $ 230,000$ 330,000 $ 4,442 $ 7,694 $ 3,000 $ 7,000 $ (18,000) $ (10,000) $ 244,042 $ 369,294 $ 860,200 $ 1,113,800 $ $ Notes: Equipment Sold equipment Cash received from sale of equipment Original Cost Related accumulated depreciation $ $ $ 3,000 10,000 9,000 Equity in Oops Corporation Beginning of year Balance Wenwegetoit's share of Oops net income Wenwegetoit's share of Oops dividends End of year Balance $ $ $ $ 312,000 90,000 (40,000) 362,000 Common Stock Market value of stock certificates distributed to shareholders (Stk Div.) Market value of shares sold to the public for cash Treasury stock sold to the public for cash Cash dividends paid $ $ $ $ 30,000 80,000 8,000 50,000 Investment in Securities Available for Sale No additional securities were purchased Securities incresed in value, credit to Other Comprehensive Income $ 4,000 Building A major addition to the building was constructed and completed. Cost of addition $ 210,000 Common Stock Market value of stock certificates distributed to shareholders (Stk Div.) Market value of shares sold to the public for cash Treasury stock sold to the public for cash Cash dividends paid $ 30,000 80,000 8,000 50,000 Investment in Securities Available for Sale No additional securities were purchased Securities incresed in value, credit to Other Comprehensive Income $ 4,000 Building A major addition to the building was constructed and completed. Cost of addition The addition was partially financed with a long-term note payable The balance of the addition cost was paid with cash $ $ 210,000 50,000 160,000 Long-Term Notes Payable Beginning balance long-term notes payable Long-term note signed to partially finance building (cash not received) Long-term note signed to improve cash balance (cash received) Ending balance long-term notes payable $ $ 244,000 50,000 66,600 360,600
