eBook Calculator Expanded Statement of Cash Flows Instructions Labels and Amount Descriptions T-Accounts Statement of Cash Flows Instructions X Financial statements for McGinnis Company as well as additional information relevant to cash flows during the period are given below. X McGinnis Company Income Statement For Year Ended December 31, 20-2 1 Net sales $1,750,000.00 2 Cost of goods sold 890,000.00 3 Gross profit $860,000.00 4 Operating expenses 590,600.00 5 Operating income $269,400.00 6 Other revenues and expenses 7 Interest revenue $2,700.00 (750.00) 8 interest expense 16,950.00 9 Gain on sale of office equipment 15,000.00 $286,350.00 10 Income before taxes 95,000.00 11 Income tax expense $191,350.00 12 Net income Previous Next > Check My Work Save and Exit Submit Assignment for Grading All work saved 10:40 PM McGinnis Company Statement of Retained Earnings For Year Ended December 31, 20-2 1 Retained earnings, January 1, 20-2 $320,000.00 2 Net income $191,350.00 3 Less dividends 40,000.00 * Net increase in retained earnings 151,350.00 5 Retained earnings, December 31, 20-2 $471,350.00 structions McGinnis Company Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 INCREASE (DECREASE) Assets 3 Current assets: 4 Cash $103,420.00 $50,520.00 $52,900.00 5 Government notes 5,400.00 16,000.00 (10,600.00) 6 Accrued interest receivable 830.00 580.00 250.00 7 Accounts receivable (net) 300,600,00 309,200.00 (8,600.00) 8 Merchandise inventory 580,300.00 495,800.00 9 Supplies and prepayments 84,500.00 35,000.00 65,000.00 32,000.00 10 Total current assets $1,055,550.00 $904,100.00 151,450.00 12 $560,000.00 $420,000.00 140,000.00 11 Property, plant, and equipment: Store equipment 15 Less accumulated depreciation-store equipment 14 Delivery equipment Less accumulated depreciation-delivery equipment Office equipment 120,000.00 440,000.00 90,000.00 330,000.00 30,000.00 $450,000.00 $350,000.00 100,000.00 15 150,000.00 280,000.00 120,000.00 210,000.00 30,000.00 16 $320,000.00 $380,000.00 (60.000.00 Instructions 16 Office equipment Less accumulated depreciation office equipment $320,000.00 $380,000.00 17 30,500.00 289,500.00 100,500.00 279,500.00 (60,000.00) (70,000.00) 190,000.00 19 Total property, plant, and equipment 1,009,500.00 819,500.00 19 Total assets $2,065,050.00 $1,723,600.00 341,450.00 70 Liabilities 21 Current liabilities: 22 Notes payable $117,000.00 $109,000.00 $8,000.00 13 Accounts payable 135,000.00 185,000.00 Income tax payable 25,000.00 15,000.00 25 Accrued and withheld payroll taxes 15,800.00 (50,000.00) 10,000.00 2.400.00 (300.00) 13,400.00 26 Accrued interest payable 900.00 1,200.00 Total current liabilities $293,700.00 $323,600.00 (29,900.00) 25 Stockholders' Equity 29 Common stock ($10 par,400,000 shares authorized: 30 Issued: 80,000 in 20-2 and 70,000 in 20-1) $800,000.00 $700,000.00 11 Paid-in capital in excess of par-common stock Retained earnings 500,000.00 471,350.00 $100,000.00 120,000.00 380,000.00 320,000.00 Total stockholders equity 151,350.00 1,400,000.00 Total liabilities and stocholders equity 1,771,350.00 $2,065,050.00 571,350.00 $1,723.600.00 341,450.00 Expanded Statement of Cash Flows Instructions Labels and Amount Descriptions T-Accounts Statement of Cash Flows Instructions Additional information: 1. Office equipment was sold in 20-2 for $35,000. Additional information on the office equipment sold is provided below. Cost $100,000 Accumulated depreciation (80,000) Book value $20.000 Market value 35.000 Gain on sale $15,000 2. Depreciation expense for the year was $70,000 3. The following purchases were made for cash Store equipment $140,000 Delivery equipment 100,000 Office equipment 32,000 $272.000 4. Declared and paid cash dividends of $40,000 Check My Work Previous Next All work saved Save and Exit Submit Assignment for Grading 10:45 PM 6/28/2020 4. Declared and paid cash dividends of $40,000 5. Issued 10,000 shares of $10 par common stock for $22 per share. 6. Acquired additional office equipment by issuing a note payable for $8.000 Required: Prepare a statement of cash flows explaining the change in cash and cash equivalents for the year ended December 31, 20-2 Check My Work