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Hi the below question has been given by professor for homework which will help me with extra credits as my scores are not good in
Hi
the below question has been given by professor for homework which will help me with extra credits as my scores are not good in finals.please help me in finding solution.
The Isabella Company Selected Balance Sheet accounts As of the year ended December 31, 2018 $ Cash and cash equivalents Short term investments Accounts receivable (net) Inventory Prepaid assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings 2017 22,955 $ 85,000 68,250 145,000 2,000 148,670 24,500 75,000 2018 77,375 15,500 80,000 165,000 1,500 76,340 20,000 25,000 200,000 300,000 358,035 300,000 328,035 . . . Based on a review of the Company's transactions for the year, the following additional details we noted: Sold short term investments costing $69,500 for $74,000 Equipment costing $20,000 with a book value of $5,000 was sold for $6,000 Issued 6% bonds payable at face value for $200,000 Purchased new computer equipment for $145,000 Paid cash dividends during the year: $20,000 Depreciation expense: $53,000 In addition, you noted the following information related to the Company's operating results: Gross margin of 85% on revenues of $1,500,000 Total operating expenses: $1,212,500 (note: included in this amount are depreciation expense and the impact of any gains or losses on the sale of investments and equipment noted in the facts above) . . The income tax rate is 20% Required: Prepare the cash flow statement for the Isabella Company using the indirect method as of the year ending December 31, 2018Step by Step Solution
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