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Prepare statement of cash flows using the indirect method for Libby Inc. for the year 2016. Libby Inc. Income statement For the year ended on
Prepare statement of cash flows using the indirect method for Libby Inc. for the year 2016. | ||||
Libby Inc. | ||||
Income statement | ||||
For the year ended on December 31, 2016 | ||||
Sales | $100,000 | |||
Cost of Goods Sold | $61,000 | |||
Depreciation | 5,000 | |||
Loss on Sale of land | 1,000 | |||
Supplies Expense | 8,000 | |||
Salaries Expense | 10,000 | |||
Income Tax Expense | 3,000 | |||
Total Expense | $88,000 | |||
Net income | $12,000 | |||
Libby Inc. | ||||
Balance Sheet | ||||
December 31 | ||||
2016 | 2015 | |||
Asset | ||||
Cash | $44,000 | $18,000 | ||
Accounts Receivable | 27,000 | 29,000 | ||
Inventory | 30,000 | 36,000 | ||
Land | 50,000 | 65,000 | ||
Equipment | 60,000 | 37,000 | ||
Less Accumulated Depreciation | (35,000) | (30,000) | ||
Total Assets | $176,000 | $155,000 | ||
Accounts Payable | $25,000 | $22,000 | ||
Salaries Payable | 800 | 1,000 | ||
Notes Payable, Long Term | 38,000 | 48,000 | ||
Common Stock | 80,000 | 60,000 | ||
Retained Earnings | 32,200 | 24,000 | ||
Total Liab. and Stockholder Eq. | $176,000 | $155,000 | ||
Additional Information | ||||
1. Bought equipment for cash, $23,000. | ||||
2. Sold Land costing $15,000 only for $14,000 with loss on sale of land $1,000 | ||||
3. Paid $10,000 on long term note payable. | ||||
4. Issue new shares of common stock for $20,000. | ||||
5. Declared and paid a $3,800 dividend in cash |
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