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prepare a statement of cash flow for 2020 also repaid 5000 of long term debt in both years Income Statements for Years Ended December 31,
prepare a statement of cash flow for 2020
also repaid 5000 of long term debt in both years
Income Statements for Years Ended December 31, 2020 2019 Sales (all are credit sales) $ 1,125,000 $ 987,000 Cost of goods sold 720,000 621,810 Gross profit 405,000 365,190 Selling and administration expense 283,500 237,374 Amortization 14,000 14,400 Operating profit 107,500 113,417 Interest expense 65,100 50,550 Earnings before taxes 42,400 62,867 Taxes 10,600 15,717 Earnings available to common shareholder $ 31,800 $ 47,150 Dividends declared and paid $ $ 40,000 Balance Sheet December 31, 2020 2019 $ Assets Cash Accounts receivable Inventory Prepaid expenses Total current assots Net plant and equipment Total assets 14,650 550,000 180,000 12,000 756,650 80,000 836,650 $ 2,574 375,060 143,016 14,000 534,650 89,000 $ 623,650 $ $ Liabilities and Shareholder's Equity Accounts payable Bank loan Accrued expenses Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total shareholder's equity Total liabilities and shareholder's equity 299,000 295,000 23,700 617,700 115,000 732,700 40,000 63,950 103,950 836,650 $ 219,500 221,000 17,000 457,500 120,000 577,500 14,000 32,150 46,150 $ 623,650 $ Step by Step Solution
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