Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HI, I NEED HELP WITH THIS BOTH WAY DIRECT AND INDIRECT. THANKS Part I - Prepare the Statement of Cash Flows using the Direct Method

image text in transcribed

HI, I NEED HELP WITH THIS BOTH WAY DIRECT AND INDIRECT. THANKS

Part I - Prepare the Statement of Cash Flows using the Direct Method Part II - Prepare the Statement of Cash Flows using the Indirect Method Balance Sheet December 31, 2020 2020 2019 33,000 22000 Assets Cash Accounts receivable, net Inventories Prepaids expenses Land Equipment Accumulated Depreciation 55,000 19,000 20.000 1.000 130,000 187,000 (14,000) 398,000 24,000 (5000) 10,000 101000 7,000 GIODO 11 1000 50,000 137000 (6,000) 8ooo 138,000 20,000 $ Liabilities & Stockholders' Equity $ $ 4,000 4000 8.000 12,000 6,000 Accounts payable Operating expenses payable Income taxes payable Dividends payable Bonds payable Common stock Paid-in capital in excess of par - CS Retained earnings 130,000 10,000 68.000 164,000 398.000 20,000 8000 3,000 3000 2,000 20,000 8.000 33,000 48,000 bood 138,000 2000 TDDOO 200D 3 Sooo S $ $ 507,000 Income Statement For the year ended December 31, 2020 Sales Cost of goods sold $ 150,000 Operating expenses 111,000 Depreciation expense 12,500 Loss on sale of equipment 3,000 Interest expense 42,000 Income before incomes tax Income tax expense Net income 318,500 188,500 47,000 $ 141,500 Additional facts for 2020: a. Issued $110.000 in long-term bonds in exchange for land, b. Issued common stock for cash c. All equipment transactions were for cash; purchased equipment costing $160,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King

5th Edition

0072444126, 978-0072444124

More Books

Students also viewed these Accounting questions

Question

How do you try to manipulate your unique smell?

Answered: 1 week ago