eBook Print Item 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 $1,890,000 Cost of goods sold 940,000 Gross profit $950,000 Operating expenses 572,300 Operating income $377,700 Other revenues and expenses Interest revenue $3,900 Interest expense (890) Loss on sale of store equipment (15,000) (11.990) Income before taxes $365,710 Income tax expense 133,000 Net income $232,710 DODOU! Assignments UTA eBook Print Item McDowell Company Statement of Retained Earnings For Year Ended December 31, 20-2 Retained earnings, January 1, 20-2 $360,000 Net Income $232,710 Less dividends 60,000 Net increase in retained earnings 172,710 Retained earings, December 31, 20-2 $532, 710 Additional informations 1. Store equipment was sold in 20-2 for $25,000. Additional Information on the store equipment sold is shown Cost $70,000 Accumulated depreciation (30,000) Book value $40,000 Market value 25,000 Loss on sale $15,000 2. Depreciation expense for the year was $112,000. 3. The following purchases were made for cash Store equipment $64,000 Delivery equipment 140,000 Office equipment 30,000 $234.000 4. Dedared and paid cash dividends of $60,000 5. Issue 10.000 shares of sto par common stock for 14 per share 6. Acourted additional entre a note ble for 16.000 3.09 2010 R23:11A 23.01 BLANKSHEET Progress 123stums eBook Printem McDowell Company Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 INCREASE (DECREASE) $75,365 6,800 720 310,700 685,400 27,000 $1,105,985 $40,325 18,000 610 325,800 540,200 39,000 535,040 (11,200) 110 (15,100) 145,200 (12000), 142,050 5963,935 Assets Current assets Cash Government notes Accrued interest receivable Accounts receivable Chet) Merchandise inventory Supplies and prepayments Total current assets Property, plant, and equipment: Store equipment Les accumulated depreciation-store equipment Delivery equipment Less accumulated depreciation-delivery equipment Office equipment Les accumulated depreciation office equipment Total property, plant, and equipment Total assets Labdities Current liabilities: Notes payable 10,000 30.000 $470.000 $460,000 180,000 290,000 150,000 310,000 $530,000 $390,000 140,000 390,000 100,000 290,000 5430,000 $400,000 88,000 342,000 76,000 324.000 $1,022,000 $924,000 $2,127,985 $1,887,935 140,000 40,000 30,000 12,000 98,000 240,050 $118,000 $102,000 16,000 Crack My Work 2 mom Check w Wode sereining All work saved QUMLICS $118,000 110,000 20,000 16,400 875 $102,000 195,000 25,000 14,900 1,035 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) Paid-in capital in excess of par-common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 16,000 (85,000) (5,000) 1,500 (160) (72,660) $265,275 $337,935 $900,000 430,000 532,710 1,862,710 $2,127,985 $800,000 390,000 360,000 2,550,000 $1,887,935 100,000 40,000 172,710 312,710 240,050 Prepare a statement of cash flows explaining the change in cash and cash equivalents for the year ended December 31, 20-2 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 accrue Interest receivable Decrest in accounts receivable (net) Increase in merchandise Inventory Decrease in spoles and prepayments Decrease in scounts payable 16.205 Decrease in income tax payable Increase in scored and with held payroll taxes 1.900 Decrease in ordineret payabile Noncash expenses and other adjustments Loss on sale at store equipment Depreciation expense Net cash provided by operating activities Cashflows from investing activities Sad store et Purchase or equipment Purchased art SHEET Al 140,000 60,000 80,000 Net cash used by investing activities Cash flows from financing activities: Issued common stock Pald 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 palid for interest Canh paid for Income taxes Check My Work 2 more Che Woses pemaining All work saved