KimFin_8e_ET_Ch12_P12-7A AutoSave OFF A Home Insert Draw Page Layout Formulas Data Review View Tell me Liberation Sans 12 Paste BIU A A A Wrap Text Merge & Center K6 A B C D E F G H 1 P12-7A Prepare a statement of cash flows--indirect method, and compute cash-based ratios 2 Presented below are the financial statements of Warner Company. 3 4 WARNER COMPANY Comparative Balance Sheet December 31 9 Assets Cash 10 Accounts receivable 2017 $35,000 20,000 2016 $20,000 14,000 11 Inventory 28,000 20,000 12 Property, plant, and equipment 60,000 78,000 13 Accumulated depreciation (32,000) (24,000) 14 Total $111,000 $108,000 15 16 Liabilities and Stockholders' Equity 17 Accounts payable $19,000 $15,000 18 Income taxes payable 7,000 8,000 19 Bonds payable 17,000 33,000 20 Common stock 18,000 14,000 21 Retained earnings 50,000 38,000 22 Total $111,000 $108,000 23 24 25 26 27 WARNER COMPANY For the Year Ended December 31, 2017 Income Statement 28 Sales Revenue 29 Cost of goods sold 30 Gross profit 31 Selling expenses 32 Administrative expenses 33 Income from operations 34 Interest expense 35 Income before income taxes $242,000 175,000 67,000 $18,000 6,000 24,000 43,000 3,000 40,000 36 Income tax expense 8,000 37 Net income $32,000 38 39 Additional data: 40 41 Depreciation expense was $17,500. Dividends dalamal and naid were $20.000. P12-7A + Ready General $%9 D CD a go * Share Comments 1 7 Conditional Format Formatting as Table Styles Cell Insert Delete Format v Sort & Filter Find & Select Analyze Data L M N P R S T U V W Y 100%