GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional Information QUALITY FIRST INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $120,200 $ 72,800 Accounts receivable, net 76, eee 59,eee Inventory 68,eee 94, Prepaid expenses 4,600 5,888 Total current assets 268,888 231,600 Equipment 137,eee 127, eee Accum. depreciation-Equipment (33,600) (11,eee) Total assets $372,800 $347,600 Liabilities and Equity Accounts payable $ 31, eee $ 38,00 Wages payable 8,000 19,600 Income taxes payable 4,100 4,600 Total current liabilities 43, 100 61,600 Notes payable (long tern) 40,000 80, eee Total liabilities 83,100 141,600 Equity Connon stock, 55 par value 240,000 170,eee Retained earnings 49,700 36,eee Total liabilities and equity $372,888 $347,600 $727, eee 445, eee 282,200 QUALITY FIRST INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $63, eee Other expenses 71,eee Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 134, eee 148,00 2,400 150,400 46,048 $184,360 Additional Information a. A $40.000 note payable is retired at its $40,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net Income and cash dividends pald. c. New equipment is acquired for $62,000 cash. d. Received cash for the sale of equipment that had cost $52.000. ylelding a $2,400 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. General General Requirement Indirect Trial Balance Direct Method Journal Ledger 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 QUALITY FIRST INC. Unadjusted Statement of Cash Flows (Direct Method) Post-closing For Year Ended June 30, 2019 Lash Tows Trom operating activities: Cash flows from investing activities: Cash flows from financing activities: General General Requirement Trial Balance Direct Method Indirect Journal Ledger Method Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values. Post-closing QUALITY FIRST INC. Unadjusted statement of Cash Flows (Indirect Method) Post-closing For Year Ended June 30, 2019 Lasn Tows Tom operating activities: Adjustments to reconcile net income to net cash provided by operating activities:
