Part 2: Income Measurement (12 points) On July 1, 2013, the Foster Company sold inventory to the Slate Corporation for $400,000. Terms of the sale called for a down payment of $100,000 and three annual installments of $100,000 due on each July 1, beginning July 1, 2014. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The inventory cost Foster $150,000. Prepare the necessary journal entries for 2013 and 2014 using point of delivery revenue recognition. Ignore interest charges. July 1, 2013 Installment receivables 1). 2). 3) 4) *** Cost of goods sold.... 6) 5). MacBook Air 5 5) 6) 7). 8) Installment receivables 9). July 1, 2014 10) 11). Installment receivables 12) Blank # 1 > Blank #2 Blank # 3 A/ Binal MacBook Air Blank # 1 AM Blank # 2 Blank # 3 N Blank #4 AJ Blank # 5 AN Blank # 6 AJ Blank #7 Blank #8 Blank #9 Blank # 10 Blank # 11 AM Blank # 12 Page 2 of 13 Next Page Previous Page Question 1 (12 points) Listen Part 1: Cash Flow Statements 1. (12 points) Prepare the operating activities section of Cash Flow Statement Gameloft Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2013 fiscal year was $57,000. Depreciation and amortization expense of $18,320 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in A/R $20,000 Increase in inventories 19,000 Increase in salaries payable 5,000 Decrease in taxes payable 1,000