Answered step by step
Verified Expert Solution
Question
1 Approved Answer
helppp statement or cash flow The comparative balance sheets and income statements for Gypsy Company follov Balance Sheets As of December 31 Year 2 Year
helppp statement or cash flow
The comparative balance sheets and income statements for Gypsy Company follov Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity $21,420 $ 2,547 2,488 1,493 6,521 6,113 19,935 43,955 (6,368) (15,793) 19, 169 9,859 $63, 165 $ 48,174 $ 2,730 $ 4,410 3,016 6,893 23,400 11,000 34,019 25,871 $63, 165 $ 48,174 Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 32,140 Cost of goods sold (12,739) Gross margin 19,401 Depreciation expense (3,414) Operating income 15,987 Gain on sale of equipment 400 Loss on disposal of land (90) Net income $ 16, 297 Additional Data 1. During Year 2, the company sold equipment for $18,861; it had originally cost $31,300. Accumulated depreciation on this equipment was $12,839 at the time of the sale. Also, the company purchased equipment for $7,280 cash 2. The company sold land that had cost $3,090. This land was sold for $3,000, resulting in the recognition of a $90 loss. Also, common stock was issued in exchange for title to land that was valued at $12,400 at the time of exchange. 3. Paid dividends of $8,149. Required Prepare a statement of cash flows using the Indirect method. (Amounts to be deducted should be indicated with a minus sign.) GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Less: Increases in current assets and Decreases in current liabilities: Plus: Noncash charges + 0 Cash flows from investing activities 0 Cash flows from financing activities: Plus: Noncash charges Cash flows from investing activities. 0 Cash flows from financing activities: 0 0 $ 0 Ending cash balance Schedule of noncash investing and financing activities 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