GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. FIELDS INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 91,000 76,000 65,000 5,900 237,900 189,000 (48,000) $ 378,900 $ 32,200 59,000 90,000 7,400 188,600 175,000 (16,000) $ 347,600 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 28,000 8,000 4,100 40,100 35,000 75, 100 $ 34,000 20,000 4,600 58,600 70,000 128,600 250,000 53,800 $ 378,900 180,000 39,000 $ 347,600 Prey 1 of 1 T Next > $ 998,000 611,000 387,000 FIELDS INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 83,000 Other expenses 99,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 182,000 205,000 6,100 211,100 64,620 $ 146,480 Additional Information a. A $35,000 note payable is retired at its $35,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $81,000 cash. d. Received cash for the sale of equipment that had cost $67,000, yielding a $6,100 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the Cash T- account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Post-closing FIELDS INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash received from customers Cash paid for operating expenses Cash paid for income taxes Net cash provided by operating activities Cash flows from investing activities: Loss on sale of equipment Cash paid for equipment Cash flows from financing activities: Prey 1 of 1 Next > Loss on sale of equipment Cash paid for equipment Cash flows from financing activities: FIELDS INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Changes in current operating assets and liabilities
