Question
Prepare the ENTIRE statement of cash flows under the direct method, including the indirect reconciliation. Be sure to include an appropriate heading 18 points BART
- Prepare the ENTIRE statement of cash flows under the direct method, including the indirect reconciliation.
Be sure to include an appropriate heading 18 points
BART Company | ||
Balance Sheet | ||
As of December 31, | ||
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|
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Account Title | 2021 | 2020 |
Ending Balance | Beginning Balance | |
Assets: |
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|
Cash | $ 27,000 | $ 20,000 |
Accounts Receivable | 70,000 | 80,000 |
Inventory | 128,000 | 120,000 |
Prepaid Advertising | 10,000 | 11,000 |
Equipment | 530,000 | 500,000 |
Accumulated Depreciation | (100,000) | (90,000) |
Total Assets | $ 665,000 | $ 641,000 |
Liabilities: |
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|
Accounts Payable | $ 75,000 | $ 70,000 |
Wages Payable | 30,000 | 33,000 |
Bonds Payable | 125,000 | 200,000 |
Total Liabilities | $ 230,000 | $ 303,000 |
Stockholders Equity |
|
|
Common Stock | $ 325,000 | $ 240,000 |
Retained Earnings | 110,000 | 98,000 |
Total Stockholders Equity | $ 435,000 | $ 338,000 |
Total Liabilities and Stockholders Equity | $ 665,000 | $ 641,000 |
Bart Company | ||
Income Statement | ||
For the year ended December 31, 2021 | ||
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Sales |
| $ 800,000 |
Less Expenses |
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Cost of Goods Sold | $ 600,000 |
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Wages Expense | 75,000 |
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Advertising Expense | 15,000 |
|
Depreciation Expense | 10,000 |
|
Total Expenses |
| 700,000 |
Net Income |
| $ 100,000 |
Additional Information
- Net income was $ 100,000 and dividends were $ 88,000.
- Common stock was issued for ______________.
- Purchased equipment for _________________________. No equipment was sold.
- Paid off ______________________ on the bonds payable. No bonds were issued.
- Declared and paid dividends of $88,000.
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