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Prepare the Statement of Cash Flow for Faraday Power Company using the indirect method. The condensed financial stateme appear below: FARADAY POWER COMPANY Statement of
Prepare the Statement of Cash Flow for Faraday Power Company using the indirect method. The condensed financial stateme appear below: FARADAY POWER COMPANY Statement of Financial Position March 31 Assets 2020 2019 Cash $- $ - Accounts receivable 27,000 27,700 Inventory 128,600 119,900 Prepaid expenses 4,500 2,700 Property, plant, and equipment 222,000 207,300 Accumulated depreciation (104,600) (95,300 $277,500 $262,300 Liabilities and Shareholders' Equity Short-term bank debt $ 37,100 $ 32,800 Accounts payable 36,100 36,600 Dividends payable 8,600 8,000 Long-term loan payable 46,100 48,800 Common shares 7,000 7,000 Retained earnings 142,600 129.100 $277,500 $262,300 FARADAY POWER COMPANY Statement of Income Year Ended March 31, 2020 Sales revenue $ 345,300 Cost of goods sold 211,700 Gross profit 133,600 Wages expense $52,600 Administration expense 23,900 Depreciation expense 19,700 Repairs and maintenance expense 6,000 102,200 Net income from operations 31,400 Interest expense 2,700 Loss on sale of equipment 4,100 6,800 Earnings before income tax 24,600 Income tax expense Net income $ 24,600 Additional information: 1. Equipment originally costing $50,500 was sold during the year for $36,000. 2. The company had proceeds from short term bank loan of $4,300. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) FARADAY POWER COMPANY Statement of Cash Flows (Indirect Method) Year Ended March 31, 2020 $ Adjustments to Reconcile Net Income to $ $ A > > > >
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