Answered step by step
Verified Expert Solution
Question
1 Approved Answer
First page is to be done with the information on the second page. . Other Information provided by the company: Equipment costing $60,000 was purchased
First page is to be done with the information on the second page.
. "Other Information provided by the company: Equipment costing $60,000 was purchased for cash. Land with a Book Value of $10,000 was sold for $15,000. Depreciaiton expense of $16,000 was recorded during the year. During 2019, the company repaid $43,000 of long-term notes payable. . During 2019, the company borrowed $34,000 on a new long-term note payable All stock is issued for cash and all dividends are cash dividends. Accounts Receivable + 7,000 +Beg. Bal -Cash Collected +Sales (1/5) . Ending Bal. Inventory 1 27,000 + Beg. Bal. - Cost of inv. +Purchases Sold Ending Bal. Accounts Payable + 4,000 -Amount paid +Beg. Bal. Ending Bal Prepare the Statement of Cash Flows: Honey Co. 2019 Statement of Cash Flows - Indirect Method Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities: +/- Net increase/decrease in cash + Beginning Balance = Ending Balance of Cash 1. Statement of Cash Flows: Honey Co. uses the indirect method to prepare the Statement of Cash Flows and had the following known financial statement information for 2019. Honey Co. Income Statement - Year Ended 12/31/19 Sales $291,300 Cost of Goods Sold 145.000) Gross Profit on sales $146,300 Selling and Administrative (including depreciation expenses) (90,000) Operating Income $56,300 Other Revenues, Expenses, Gains, Losses: Interest Revenue $1,000 Interest Expense (3,500) Gain on Sale of Land 5.000 3,500 Income before income taxes $59,800 Income Tax expense 17.800) Net Income $52.000 Honey Co. Statement of Retained Earnings - Year Ended 12/31/19 Balance, 1/1/19 Net Income for 2019 Dividends declared and paid in 2019 Balance, 12/31/19 $178,000 52,000 (3.000) $227.000 Honey Co. Comparative Balance Sheets - 12/31/2019 and 12/31/2018 2018 2019 Increase/(Decrease) Assets Current Assets: Cash $13,000 $30,000 Accounts Receivable (net) 36,000 29,000 Inventory 29.000 56.000 Total Current Assets $78,000 $115,000 Property. Plant, and Equipment: Land 5172,000 $162,000 Equipment 92.000 152,000 Accumulated Depreciation- Equipment 47 8001 163,800) Total Property. Plant, and Equipment $216,200 $250,200 Total Assets $294.200 $355.200 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $13,000 $9,000 Long-Term Liabilities: Notes Payable $79.000 $70,000 Total Liabilities $92,000 579,000 Stockholders Equity Common Stock, no-par $24.200 $59,200 Retained Earnings 178,000 227,000 Total Stockholders' Equity $ 202 200 $286.200 Total Liabilities and Stockholders' Equity $299 200 $365,200 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started