Question
Prepare a statement of cash flow on both a direct and indirect basis 2019 2018 Assets: Cash 225,000 100,000 Accounts receivable, net 95,000 84,000 Inventory
Prepare a statement of cash flow on both a direct and indirect basis 2019 2018 Assets:
Cash 225,000 100,000 Accounts receivable, net 95,000 84,000 Inventory 52,000 60,000 Prepaid expenses 13,000 20,000 Investments held to maturity 45,000 10,000 Investments available for sale 25,000 20,000 Property, plant & equipment 750,000 600,000 Accumulated depreciation (90,000) (60,000) Patents 16,000 20,000 Total Assets 1,131,000 854,000 Liabilities & Equity Accounts payable 44,000 50,000 Accrued liabilities 10,000 20,000 Interest payable 11,000 9,000 Long-term Notes Payable 40,000 50,000 Common stock 250,000 200,000 Additional paid in capital 340,000 250,000 Paid in capital stock options 45,000 10,000 Accumulated other comprehensive income 5,000 -0- Retained earnings 386,000 265,000 Total liabilities and equity 1,131,000 854,000 Sales 2,150,000 Cost of goods sold 1,200,000 Gross profit 950,000 Operating expenses 560,000 Pre-tax Operating income 390,000 Loss on sale of investments (5,000) Gain on sale of equipment 10,000 Pre-tax income 395,000 Income taxes 79,000 Net income 316,000
a. Stock option expense of $35,000 was recognized in 2019
b. Equipment of $200,000 was purchased using cash and $140,000 common stock, with $90,000 excess of par
c. Equipment with cost of $50,000 and book value of $30,000 was sold for $40,000
d. Investments, held to maturity, with a cost of $10,000 were sold for $5,000.
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