eBook Calculator Printem Expanded Statement of Cash Flows Financial statements for McDowell Company as well as additional information relevant to cash flows during the period are shown. McDowell Company Income Statement For Year Ended December 31, 20-2 Net Sales 51,889,000 Cost of goods sold 941,000 Gross profit $948,000 Operating expenses 574,300 operating come $373,700 Other revenues and expenses: Interest reverve $3,900 Interest expense (900) Loss on sale of store equipment (15,200) (12,200 Income before taxes $361,500 127,000 Income tax expense $234,500 Net income McDowell Company Statement of Retained Earnings For Year Ended December 31, 20-2 Retoined erinos, Jarwary 1, 20-2 Net innom 34 $366,550 Check My Work Previous All work saved Save and Submit Assignment for Grading RE E 9:35 PM 6220120 eBook Calculator Printem McDowell Company Statement of Retained Earnings For Year Ended December 31, 20-2 Retained earnings, January 1, 20-2 Net income $234,500 Less dividends 60,000 Net increase in retained eamings Retained angs, December 31, 20-2 $350, 350 174,500 $541,050 Additional information: 1. Store equipment was sold in 20-2 for $21,700. Additional information on the store equipment sold is shown COSE $68,100 Accumulated depreciation (31,200) Book value $36,900 Market value 21,700 Loss on sale $15,200 2. Depreciation expense for the year was $116,200. 3. The following purchases were made for cash: Store equipment $57.100 Delivery equipment 138,000 Office equipment 31,000 $226,100 Check My Work Previo All work saved Save and Et Submit Assignment for e O 00 eBook Revery quran Office equipment Calculator WOU Print Ilem 31,000 $226,100 4. Declared and paid cash dividends of $60,000. 5. Issued 6,000 shares of $10 par common stock for $14 per share. 6. Acquired additional store equipment by issuing a note payable for $17,000. McDowell Company Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 INCREASE (DECREASE) Assets CLETentsets: Cash $10.300 17.900 650 35,000 15 100) $75,300 6,800 720 310,500 685,400 28,000 70 326, 100 540,500 38.900 Government notes Accrued interest receivable Accounts receivable (net) Merchandisewentory Supplies and prepayments Total current assets Property plant and equipment: Store equipment Less accumulated depreciation store equipment Durant (15,600) 144,900 (1000) 142,370 $1,106,220 $964,350 $468,000 181000 San 287.000 $462,000 150,000 29 on 312,000 6,000 31.000 YA Check My Work Al work saved Save and Exit Submit Assign O SHUMI BO eBook Calculator Printer TUSSE WA Office equipment Less accumulated depreciation office equipment Total property, plant, and equipment LE $431,000 89.000 5400,000 25,000 342.000 $1,020,000 $2.128,720 25,000 $930,000 $1,894,350 31,000 14,000 90,000 232,370 Total assets $118.000 99,695 20,200 16,900 875 $101.000 195,900 24,800 15,000 1,100 Liabilities Current liabilities: Notes payable Accounts payable Income tax payable Accrued and withheld payroll taxes Accrued interest payable Total current liabilities Stockholders' Equity Common stock ($10 par 300,000 shares authorized: Issued: 90,000 in 20-2 and 80,000 in 20-1) Pardin capital in excess of par-common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 17,000 96,205) (4.600) 1,900 (225) (82,130) $255,670 $337,800 $900,000 430,000 541,050 $800,000 390,000 100,000 40,000 174,500 314,500 366,550 1,871,050 $2,126,720 1,556,550 $1,894,350 232,370 Required: Prepare a statement of cash flows explaining the change in cash and cash equivalents for the year ended December 31, 20-2 Previous Check My Work All work saved Save and Exit Submit Assignment for o 93 6/29 Print Item Required: Prepare a statement of cash flows explaining the change in cash and cash equivalents for the year ended December , 2012 McDowell Company Statement of Cash Flows For Year Ended December 31, 20-2 Cash flows from operating activities: Net income Adjustments for changes in current assets and liabilities related to operating activities Increase in accrued interest receivable Decrease in accounts receivable (net) Increase in merchandise inventory Decrease in supplies and prepayments Decrease in accounts payable O 00001100 00 Decrease in income tax payable Increase in accrued and withheld payroll taxes Decrease in accrued interest payable Noncash expenses and other adjustments: Loss on sale of store equipment Depreciation expense Net cash provided by operating activities Check My Work All work saved. Save and Exit Submit Ass BE BR O Depreciation expense Net cash provided by operating activities Cash flows from Investing activities Sold store equipment Purchased store equipment Purchased delivery equipment Purchased office equipment Net cash used by investing activities Cash flows from financing activities: Issued common stock DOO Do DO O DUO 0 0 Paid cash dividends Net cash provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents, January 1, 20-2 Cash and cash equivalents, December 31, 20-2 Schedule of Noncash Investing and Financing Activities: Acquired store equipment by issuing a note payable Supplemental Disclosures of Cash Flow Information: Cash paid for interest cash paid or income taxes Check My Work All work saved Save and Exe Submit Ass O ! Investigaciyes are transactions involving the purchase and sale of long-term assets, investments in debt and equity securities, and ending money an Net cash used by investing activides Cash flows from financing activities: Issued common stock Paid cash dividends Net cash provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents, January 1, 20-2 Cash and cash equivalents, December 31, 20:2 Schedule of Noncash Investing and Financing Activities: Acquired store equipment by issuing a note payable 0000 0 00 Supplemental Disclosures of Cash Flow Information: Cash paid for interest Cash paid for income taxes Feedback Y Clock My Work Cash flows from operating activities include the primary source of cash adjusted for non cash items and amounts or the income statement which are in categories, such as gains and losses on property, plant and equipment Changes assets and liabilities increase or decrease cash from operatin about how cash is impacted when current assets and liabilities increase and decrease principal on the related loans. Think about whetishness or decrease because of these transactions Check My Work All work saved Save and Exit Sul te Many O