Please when posting can you make sure the page doesnt cut out so I can see the full answer
i added the pictures again just incase the first one wasnt clear
TWININGS INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash paid for operating expenses Cash paid for merchandise Cash received from customers Cash paid for income taxes Cash flows from investing activities: Cash paid for equipment Cash received from sale of equipment (85,000) 22,900 (62,100) Cash flows from financing activities: Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 70,000 (40,000) (141,190) Net decrease in cash Cash balance at prior year-end Cash balance at current year-end (111,190) $ (173,290) 10,400 $ (162,890) GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information 2018 TWININGS INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 61,800 Accounts receivable, net 81,000 Inventory 68,000 Prepaid expenses 6, 100 Total current assets 216,900 Equipment 195,000 Accum. depreciation Equipment (48,000) Total assets $363,900 Liabilities and Equity Accounts payable 5.31,000 Wages payable 7,000 Income taxes payable 4.500 Total current liabilities 42,500 Notes payable (long term) 40.000 Total liabilities 82,500 Equity Common stock, $5 par value 240,000 Retained earnings 41.400 Total liabilities and equity $363,900 $ 10,400 63,000 94,000 7,600 175,000 181,000 (16.000) $340,000 $ 38,000 17,000 5.000 60.000 80,000 140,000 170,000 30,000 $340,000 TWINGS INC Income Statement For Tear Ended June 30, 2019 51,033,000 Coat of goods sold 635.000 dross profit 603,000 Operating expenses Depreciation expense $ 87,000 other expense 103.000 Total operating expenses 190.000 213,000 Other gains (los) Gain on sale of equipment 6.90 Income before taxe 219.900 The taxes expense 61310 Net Income Additional Information a. A $40,000 note payable is retired at its $40,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $85,000 cash d. Received cash for the sale of equipment that had cost $71,000, yielding a $6,900 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. 6. All purchases and sales of inventory are on credit $1,038,000 635,000 403,000 TWININGS INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 87,000 Other expenses 103,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 190,000 213,000 6,900 219,900 67,310 152,590 $ Additional Information a. A $40,000 note payable is retired at its $40,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $85,000 cash. d. Received cash for the sale of equipment that had cost $71,000, yielding a $6,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Use the following financial statements and additional information. TWININGS INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 61,800 $ 10,400 Accounts receivable, net 81,000 63,000 Inventory 68,000 94,000 Prepaid expenses 6,100 7,600 Total current assets 216,900 175,000 Equipment 195,000 181,000 Accum. depreciation-Equipment (48,000) (16,000) Total assets $363,900 $340,000 Liabilities and Equity Accounts payable $ 31,000 $ 38,000 Wages payable 7,000 17,000 Income taxes payable 4,500 5,000 Total current liabilities 42,500 60,000 Notes payable (long term) 40,000 80,000 Total liabilities 82,500 140,000 Equity Common stock, $5 par value 240,000 170,000 Retained earnings 41,400 30,000 Total liabilities and equity $363,900 $340,000
