Question
Prepare the COMPLETE cash flow statement in good form). The operating activities should be prepared using the DIRECT method. Clearly label all amounts and provide
Prepare the COMPLETE cash flow statement in good form). The operating activities should be prepared using the DIRECT method. Clearly label all amounts and provide detailed supporting calculations and all related financial statement notes. If no notes are required, please state no notes are required.
Additional Information:
New equipment with a cost of $70,500 was purchased for $35,500 cash and a $35,000 note payable was signed for the balance owing.
Equipment with a cost of $28,000 was sold for $7,775, resulting in a gain of $4,375.
Accounts payable relate only to suppliers from which inventory was purchased.
Prepaid expenses and accrued expenses payable are related to operating expenses.
Based on the cash flow statement is the bank likely to have concerns about KI's cash position? Explain
have gathered. prepared and the additional information I Kemp Inc. Statement of Financial Position December 31 2017 2016 S51,350 $23,625 40,400 55,950 47,250 145,000 102,500 (24.750) 20.000 S315.200 $229,450 Assets Cash Accounts receivable Inventory 18,500 51,325 53,500 Prepaid expenses Property, plant and equipment Accumulated depreciation Liabilities and shareholders' equity Accounts payable Accrued expenses payable Notes payable, due December 31, 2017 Preferred shares Common shares $31,350 $24,140 6,050 70,000 20,000 100,000 80,000 87.800 60,895 $315,200 $229,450 9,415 35,000 20,000 Retained earnings Kemp Inc. Income Statement Year Ended December 31, 2017 Sales Gain on sale of equipment $153,750 4,375 158.125 Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense 49,730 12,335 29,350 5,220 96,635 61,490 16.335 $45,155 Profit before income taxes Income tax expense Profit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started