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Net sales Expenses: VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Cost of goods sold Operating expenses Depreciation expense Loss on
Net sales Expenses: VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $1,800,000 828,000 24,000 7,700 13,500 45,000 $2,886,000 2,718,200 $ 167,800 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $196,620 $119,460 77,700 57,000 105,000 132,000 10,080 5,040 102,000 207,000 234,000 264,000 207,000 (65,400) (41,400) $ 897,000 $713,100 $ 63,300 5,700 $ 78,000 9,400 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 14,700 13,700 279,000 222,000 270,000 270,000 264,300 120,000 Total liabilities and stockholders' equity $ 897,000 $713,100 Additional Information for 2021: 1. Purchase investment in bonds for $102,000. 2. Sell land costing $27,000 for only $19,300, resulting in a $7,700 loss on sale of land. 3. Purchase $57,000 in equipment by issuing a $57,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $23,500. Required: Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.)
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