prepare a complete statement of cashflows using the direct metvod disclose any noncash investing and financing activities in a note
information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, Brown COMPANY Brown COMPANY Income Statement Comparative Balance Sheets or Current Year Ended December 3 At Decem Current Year Prior Year Sales. $ 582,500 Assets Cost of goods sold 285,000 Cash .....$ 49,800 S 73,500 Gross profit.. 297,500 Accounts 65,810 50,625 Operating expenses $ 132,400 Inventory 275,656 251,800 Depreciation expens 20.750 153,150 Prepaid es 1,250 1,875 Other gains (losses) Total Cun 392,516 377,800 Loss on sale of equipment (5.125) Equipmen 157,500 108,000 Income before taxes 139,225 Accum. D (36,625) (46,000) Income taxes expense 24.250 Total Ass: $ 513,391 S 439,800 Net income 114.975 Liabilities and Equity Additional Information on Current-Year Tran Accounts $ 53,141 S 114,675 a. The loss on the cash sale of equipment was $5. Long-tem_ 75,000 54,750 b. Sold equipment costing 546,875, with accumul Total liabi 128,141 169,425 for $11,625 cash. c. Purchased equipment costing 896,375 by payin, Equity a long-term notes payable for the balance. Common 162,750 150,250 d. Paid S46,125 cash to reduce the long-term note Paid-in ca 37,500 0 e. Issued 2,500 shares of common stock for $20 a Retained 185,000 120,125 1. Declared and paid cash dividends of $50,100. Total liabi S 513,391 $ 439,800 Instructions: Complete the questions below. Show your work to cach question in the corresponding tabs in this Excel State your name in the highlighted cell on each sheet with your solution. Save this Excel workbook using the following naming convention: Excel Projectl-Cash Flows_LastNam The form and presentation of your work contribute towards your grade Submit the completed workbook via Canvas by Required: 1 Prepare a cash flow worksheet to aid in the preparation of the statement of cash flows using the indir Refer to the information reported about Brown Company above and the following list of transactions Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the a. Net ino g. Sold equipment costing S46,875, with accumulated depreciation of $30,125, for $11,62: b. Accour h. Purchased equipment costing S96,375 by paying $30,000 cash and c. Invento by signing a long-term notes payable for the balance. d. Prepaid j. Paid $46,125 cash to reduce the long-term notes payable. e. Accounk. Issued 2,500 shares of common stock for $20 cash per share. 1. Depreci I. Declared and paid cash dividends of S30,100. 2a. Prepare a complete statement of cash flows using the indirect method for the current year. Disclose 2b. Analyze and discuss the statement of cash flows prepared in part 2a, giving special attention to the w 3 Prepare a complete statement of cash flows using the direct method. Disclose any noncash investing Brown COMPANY Income Statement For Current Year Ended December 31 $ 582,500 285,000 297,500 $ 132,400 20,750 153,150 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense. Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income (5.125) 139,225 24,250 $ 114,975 5 6 7 28 09 30 31 Additional Information on Current-Year Transactions a. The loss on the cash sale of equipment was $5.125 (details in 6). b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term notes payable for the balance. d. Paid $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100, Prior Year Brown COMPANY Comparative Balance Sheets At December 31 Current Year Assets Cash $ 49,800 Accounts Receivable 65,810 Inventory 275,656 Prepaid expenses 1,250 Total Current assets 392,516 Equipment 157,500 Accum. Depreciation Equipment (36,625) Total Assets $ 513,391 $ 73,500 50,625 251,800 1,875 377,800 108,000 (46,000) $ 439,800 Liabilities and Equity Accounts payable Long-term notes payable Total liabilities $ 53.141 75,000 128,141 $ 114,675 54,750 169,425 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 162,750 37,500 185,000 $ 513,391 150,250 0 120,125 $ 439,800
