Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Cash Payments
Payments for Merchandise Inventory Answer

Payments for Other Operating Expenses Answer

Payments for Income Taxes Answer

Total Cash Payments Answer

Net Cash Provided (Used) by Operating Activities Answer

Cash Flow from Investing Activities
Sale of Land Answer

Net Cash Provided (Used) by Investing Activities Answer

Cash Flow from Financing Activities
Proceeds from Notes Payable Answer

Payment of Cash Dividend Answer

Issue of Common Stock Answer

Net Cash Provided (Used) by Financing Activities Answer

Net Increase (Decrease) in Cash Answer

Cash at the Beginning of the Year Answer

Cash at the End of the Year Answer

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 Humor And Other Oxymorons

Authors: Mr Mike Jacka

1st Edition

0991280903, 978-0991280902

More Books

Students also viewed these Accounting questions