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Data Table Data Table ury si Digital Subscriptions, Inc. Income Statement Year Ended December 31, 2016 Digital Subscriptions, Inc. Comparative Balance Sheet December 31, 2016
Data Table Data Table ury si Digital Subscriptions, Inc. Income Statement Year Ended December 31, 2016 Digital Subscriptions, Inc. Comparative Balance Sheet December 31, 2016 and 2015 2016 2015 Sales Revenue Assets p noi $ 440,000 210,200 Cost of Goods Sold Current Assets Cash $ 26,600 $ 229,800 15,800 24.900 26,500 71,400 80,000 S 91,500 Gross Profit Operating Expenses Salaries Expense Depreciation ExpensePlant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses) Accounts Receivable Merchandise Inventory Long-term Assets Plant Assets Accumulated DepreciationPlant Assets 14,600 10,600 112,220 111,720 (14,820) 35,400 96,600 (14,520) 10,000 Land 133,200 $ 265,400 $ 239,900 Total Assets Liabilities Interest Revenue 8,700 (21,100) Current Liabilities: $ 34.900 $ (12,400) 30.100 Interest Expense Total Other Revenues and (Expenses) Net Income Before Income Taxes Income Tax Expense Accounts Payable Accrued Liabilities 27,900 30,300 120.800 19,900 Long-term Liabilities: Notes Payable 74,000 108,000 $ 100,900 Net Income Total Liabilities 136,800 168,400 Stockholders' Equity Print Done 65,000 Common Stock, no par Retained Earnings 88,800 39,800 6,500 Print Done The 2016 income statement and comparative balance sheet of Digital Subscriptions, Inc. follow: (Click the icon to view the income statement.) : (Click the icon to view the comparative balance sheet.) Additionally, Digital Subscriptions purchased land of $25,400 by financing it 100% with long-term notes payable during 2016. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $14,300. The plant acquisition was for cash. Requirements 1. Prepare the 2016 statement of cash flows by the direct method. 2. How will what you learned in this problem help you evaluate an investment? Requirement 1. Prepare the 2016 Statement of Cash Flows by the direct method. (Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Digital Subscriptions, Inc. Statement of Cash Flows Year Ended December 31, 2016 Cash Flows from Operating Activities: Receipts: Total Cash Receipts Payments: Total Cash Payments Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, December 31, 2015 Cash Balance, December 31, 2016 Non-cash Investing and Financing Activities: Total Non-cash Investina and Financing Activities
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