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Prepare the statement of cash flows for year 2 using the direct method. GOULD CORPORATION Comparative Balance Sheets December 31, Year 2 and Year 1
Prepare the statement of cash flows for year 2 using the direct method.
GOULD CORPORATION Comparative Balance Sheets December 31, Year 2 and Year 1 Absolute Value Year 2 Year1 of Change Cash Receivables Inventory Prepaid expenses. Plant assets 75,000 51,000 24,000 9,000 6,000 3,000 90,000 39,000 60,000 9,000 40,000 350,000 48,000 54,000 6,000 51,000 Intangible assets. Total assets 58,000 529,000 $442,000 51,000 56,000 14,000 7,000 Accounts payable Accrued expenses Long-term note payable. Mortgage payable Preferred stock Common stock Retained earnings 5,000 4,000 30,000 0 150,000 150,000 0 175,000 18,000 0,000 175,000 55,000 200,000 200,000 22,000 33,000 GOULD CORPORATION Income Statement For Year Ended December 31, Year 2 Sales Cost of sales Gross profit Operating expenses. Depreciation & amortization Gain on sale of asset Net income $660,000 (363,000) 297,000 (183,000) 35,000) 5,000 84,000Step by Step Solution
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