Question
Leviathan Manufacturing makes and sells integrated circuit boards. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below.
Leviathan Manufacturing makes and sells integrated circuit boards. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below.
Leviathan Manufacturing Balance Sheet As at January 31 | ||
2018 | 2017 | |
Assets | ||
Current Assets | ||
Cash | $458,670 | $128,400 |
Accounts Receivable | $228,800 | $253,100 |
Merchandise Inventory | $507,500 | $468,500 |
Prepaid Expenses | $24,500 | $24,500 |
Total Current Assets | $1,219,470 | $874,500 |
Noncurrent Assets | ||
Land | $17,100 | |
Equipment | $346,400 | $346,400 |
Less: Accumulated Depreciation | $-105,400 | $-91,400 |
Total Noncurrent Assets | $241,000 | $272,100 |
Total Assets | $1,460,470 | $1,146,600 |
Liabilities | ||
Current Liabilities | ||
Accounts Payable | $311,300 | $327,700 |
Notes Payable, Current Portion | $36,200 | $29,100 |
Total Current Liabilities | $347,500 | $356,800 |
Notes Payable, Long-Term Portion | $205,900 | $193,600 |
Total Liabilities | $553,400 | $550,400 |
Stockholders' Equity | ||
Common Stock | $290,000 | $243,000 |
Retained Earnings | $617,070 | $353,200 |
Total Stockholders' Equity | $907,070 | $596,200 |
Total Liabilities and Equity | $1,460,470 | $1,146,600 |
Additional Information: During 2018, land was sold for a loss of $5,700. There was no purchase of equipment throughout the year. The company did not pay off any amount of the notes payable.
Leviathan Manufacturing Income Statement For the Year Ended January 31, 2018 | |
Sales | $2,972,000 |
Cost of Goods Sold | $1,783,200 |
Gross Profit | $1,188,800 |
Operating Expenses | |
Depreciation Expense | $14,000 |
Other Operating Expenses | $681,300 |
Total Operating Expenses | $695,300 |
Income from Operations | $493,500 |
Other Income | |
Loss on Sale of Land | $-5,700 |
Income before Income Tax | $487,800 |
Income Tax | $170,730 |
Net Income | $317,070 |
Prepare the statement of cash flows using the direct method. Assume accounts payable is only for the purchase of merchandise inventory. Do not show the reconciliation schedule of net income with net cash provided (used) by operating activities at the bottom of the statement of cash flows.
Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash.
Leviathan Manufacturing Cash Flow Statement For the Year Ended December 31, 2018 | ||
Cash Flow from Operating Activities | ||
Cash Receipts | ||
Cash Received from Customers | Answer
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Cash Payments | ||
Payments for Merchandise Inventory | Answer
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Payments for Other Operating Expenses | Answer
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Payments for Income Taxes | Answer
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Total Cash Payments | Answer
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Net Cash Provided (Used) by Operating Activities | Answer
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Cash Flow from Investing Activities | ||
Sale of Land | Answer
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Net Cash Provided (Used) by Investing Activities | Answer
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Cash Flow from Financing Activities | ||
Proceeds from Notes Payable | Answer
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Payment of Cash Dividend | Answer
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Issue of Common Stock | Answer
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Net Cash Provided (Used) by Financing Activities | Answer
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Net Increase (Decrease) in Cash | Answer
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Cash at the Beginning of the Year | Answer
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Cash at the End of the Year | Answer
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