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Prepare a cash flow. Calculate the income income from operations using both the direct and indirect method. 10 po.ns pepare la1Cula t & cash low
Prepare a cash flow. Calculate the income income from operations using both the direct and indirect method.
10 po.ns pepare la1Cula t & cash low ADAMS CORPORATION Comparative Balance Sheet December 31, 2018 and 2017 Increase 2018 2017 (Decrease) Assets rent Assets: Cash $ 22,000 $ 19,000 $ 3,000 Accounts Receivable 22,000 23,000 (1,000) Merchandise Inventory 35,000 34,000 1,000 ng-term Assets Plants Assets 97,200 153,200 56,000 Accumulated Depreciation-Plant Assets (25,200) (27,200) (2,000) otal Assets $73,000 $205,000 $132,000 Liabilities Current Liabilities: Accounts Payable $ 26,000 $ 9,000 $ 35,000 (2,000) Accrued Liabilities 7,000 9,000 Income Tax Payable 10,000 10,000 0 Long-term Liabilities: Bonds Payable Total Liabilities 84,000 53,000 31,000 136,000 98,000 38,000 Stockholders' Equity Common Stock, no par 52,000 20,000 32,000 Retained Earnings 8,000 19,000 27,000 Treasury Stock (5,000) (5,000) (10,000) Total Stockholders' Equity 35,000 34,000 69,000 Total Liabilities and Stockholders' Equity $73,000 $ 205,000 $132,000 ADAMS CORPORATION Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 662,000 Cost of Goods Sold 560,000 Gross Profit 102,000 Operating Expenses: Salaries and Wages Expense $ 46,000 Depreciation Expense-Plant Assets 10,000 Rent Expense 2,000 Total Operating Expenses 58,000 Operating Income 44,000 Other Income and (Expenses): Loss on Disposal of Plant Assets (2,000) Total Other Income and (Expenses) (2,000) Net Income Before Income Taxes 42,000 Income Tax Expense 16,000 S 26,000 Net Income Transaction data for 2018 $140,000 Cash paid for purchase of equipment 18,000 Cash payment of dividends Issuance of common stock to retire bonds payable 13,000 Issuance of bonds payable to borrow cash 44,000 19,000 Cash receipt from issuance of common stock Cash receipt from sale of equipment (Cost, $84,000; Accumulated Depreciation, $8,000) 74,000 Cash paid for purchase of treasury stock 5,000Step by Step Solution
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