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Prepare a statement of cash flows (direct method) and the reconciliation of net income to cash flow from operations for the year ended december 31,
Prepare a statement of cash flows (direct method) and the reconciliation of net income to cash flow from operations for the year ended december 31, 20x4.
Using the information provided prepare a cash flow statement (direct method) and the reconciliation of net income to cash flow from operations for the year ended December 31, 20X4. Leif Corporation Income Statement For the Year Ended December 31, 20X4 $1,250 950 $ 300 Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling General and Administrative Expense Depreciation Expense Operating Income Interest Expense Interest /revenue Profit before Tax Income Tax Expense Net Profit 130 $ 170 $ 145 53 $ 92 Leif Corporation Balance Sheet December 31 20X4 and 20X3 20X4 20x3 $ 150 238 750 350 ASSETS Cash Accounts Receivable Inventory Prepaid Expenses Plant Assets Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Taxes Payable Long /term Debt Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 212 175 300 225 638 (250) $1,300 485 (248) $1,725 $ 125 75 $ 132 125 555 750 163 $1,725 250 750 100 $1,300 ADDITIONAL INFORMATION: During 20X4, Leif paid $263 in cash for new plant assets and financed an additional $55 in plant asset acquisitions, borrowing the full amount by issuing a note payable. Therefore capital expenditures are $318. Leif sold plant assets for their book value in a cash transaction. Leif did not repay any debt during the current year. All dividends declared were cash dividendsStep by Step Solution
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