Question
How do I create a statement of cash flows based on the income statement and balance sheets below? For this project this balance sheet and
How do I create a statement of cash flows based on the income statement and balance sheets below? For this project this balance sheet and income statement are the only statements given. more information includes :
-In addition to shares issued in prior years, the restaurant issued 50, 000 shares of common stock with a par value of $0.01 for a total of $200,000. There was no other stock related transaction in the year.
-The restaurant had $100,000 retained earnings and $37,000 cash balance at the beginning of 2020.
-The restaurant does not engage in any types of investment in securities of other business (e.g.,stocks,bonds,etc.).
-The restaurant owners took 10% of 2020 year net income as dividend.
-The restaurant borrowed $100,000 from a local bank to finance its operation in 2020. The fixed rate loan is due in 2025.Note thatitdoesnot loancashtoitsofficers,employeesoroutsideparties.
-The restaurant purchased a delivery van for its catering service for $27,000by paying $7,000 cash and signing a note for the remaining balance.It sold a piece of kitchen equipment for $500at the end of June. The equipment was purchased for $5,000 and had a book value of $2,000 at the beginning of 2020.The straight line depreciation is used for the equipment with a depreciation rate of $1,000 per year.
-I do not have any previous years statements, as they were not provided for this project.
205,000 21,353 3,019 15,231 20,000 264,603 45,552 200,000 100,340 345,892 Whitewater Pizza Balance Sheet December 31, 2020 Assets Current Assests Cash Inventory Pre-Paid insurance Supplies Accounts recievable Total current assets Property, plant, and equipment Land Buildings Equipment 101,340 Less: Accumulated depreciation - equipment 1,000 Intangible assets License Total Assets Liabilities and Stockholder's Equity Current Liabilities Accounts Payable Salaries and Wages Payable Sales Tax Payable Income Tax Payable Unearned Catering Service Revenue Interest Payable Total current liabilities Long-term liabilities Mortage payable Notes Payable Total long-term liabilities Total Liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 14,000 624,495 4,342 3,672 3,402 1,572 4,152 1,290 18,430 53,065 100,000 153,065 171,495 353,000 100,000 453,000 624,495 Whitewater Pizza Income Statement For the Year Ended December 31, 2020 Sales Sales Revenue Catering Service Revenue Less: Sales returns and allowances $225,769.00 $156,987.00 $105,854.00 $105,854.00 $276,902.00 $122,853.00 $154,049.00 Net Sales Cost of goods Sold Gross Profit Operating Expenses Salaries and Wages Expense Utilities Expense Advertising Expense Real Estate Taxes Supplies Expense Depreciation Expense Insurance Expense Total operating expenses Income from operations Other expenses and losses Loss on disposal of plant asset Interest expense $44,064.00 $15,000.00 $17,635.00 $20,000.00 $31,000.00 $499.99 $2,780.00 $130,978.99 $23,070.01 $1,500.00 Net Income $21,570.01Step by Step Solution
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