Question
HANNAH BARBERRA COMPANY COMPARATIVE BALANCE SHEET DECEMBER 31, 2023 & 2022 2023 2022 ASSETS: Cash $42,073 $47,075 Accounts Receivable 28,000 30,735 Inventory 132,000 123,550 Prepaid
HANNAH BARBERRA COMPANY COMPARATIVE BALANCE SHEET DECEMBER 31, 2023 & 2022 2023 2022 ASSETS: Cash $42,073 $47,075 Accounts Receivable 28,000 30,735 Inventory 132,000 123,550 Prepaid Expenses 5,570 5,800 Equipment 110,500 100,000 Accumulated Depreciation -55,375 -47,500 TOTAL ASSETS $262,768 $259,660 LIABILITIES & STOCKHOLDERS' EQUITY: Accounts Payable $17,588 $47,000 Short-term Notes Payable 8,000 6,000 Long-term Notes Payable 51,250 38,750 Common Stock, $5 Par 105,500 100,000 Paid-In-Capital Excess Par 11,000 0 Retained Earnings 73,930 67,910 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $262,768 $259,660 HANNAH BARBERRA COMPANY INCOME STATEMENT YEAR ENDED 12/31/23 Sales $400,000 Cost of Goods Sold -250,000 Gross Profit $150,000 OPERATING EXPENSES: Depreciation Expense 18,100 Other Expenses 89,000 TOTAL OPERATIING EXPENSES -107,100 OPERATING INCOME $42,900 Other Gains (Losses) Loss on Sale of Equipment -2,400 INCOME BEFORE TAXES $40,500 Income Tax Expense -9,525 NET INCOME $30,975 ADDITIONAL INFORMATION ON YEAR 2023 TRANSACTIONS: (1) Sold equipment for $13,425. (2) Purchased equipment costing $36,000 paying $10,000 cash and signing a long-term Note Payable for $26,000. (3) Paid $15,300 to reduce the long-term Notes Payable (4) Borrowed $2,000 by signing a short-term Notes Payable (5) Declared and Paid Cash Dividends of $28,205 (6) Issued 1,100 shares of Common Stock for $15 per share. REQUIRED: Show all work especially on (2) to receive any credit for the Direct Method (1) Prepare a Complete Statement of Cash Flows using the Indirect Method. (2) Prepare ONLY the Operating Activities of the Statement of Cash Flows using the Direct Method.
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