Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Iber 31, 2020. begin{tabular}{|c|c|c|} hline Long-term loans payable & 59,700 & 68,600 hline Common stock, $10 par & 100,000 & 100,000 hline Contributed

image text in transcribedimage text in transcribedimage text in transcribed Iber 31, 2020. \begin{tabular}{|c|c|c|} \hline Long-term loans payable & 59,700 & 68,600 \\ \hline Common stock, \$10 par & 100,000 & 100,000 \\ \hline Contributed capital, common stock & 30,000 & 30,000 \\ \hline Retained earnings & 58,800 & 36,600 \\ \hline Total liabilities \& stockholders' equity & $314,100 & $294,900 \\ \hline \end{tabular} AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 \begin{tabular}{|c|c|c|} \hline Sales revenue & & $339,375 \\ \hline Cost of goods sold & & 175,000 \\ \hline Gross profit & & 164,375 \\ \hline Operating expenses & & 119,400 \\ \hline Operating income & & 44,975 \\ \hline Interest expense & $11,500 & \\ \hline Gain on sale of equipment & 1,900 & 9,600 \\ \hline Income before tax & & 35,375 \\ \hline Income tax expense & & 7,075 \\ \hline Net income & & $28,300 \\ \hline \end{tabular} Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2020 . 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020 . Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. - 15,000 or in parenthesis e.g. (15,000).)

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

Auditing Today

Authors: Emile Woolf

3rd Edition

013052168X, 9780130521682

More Books

Students also viewed these Accounting questions