Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Presented below are the 2018 income statement and comparative balance sheets for Santana Industries. SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2018

Presented below are the 2018 income statement and comparative balance sheets for Santana Industries.

SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in thousands)
Sales revenue $ 14,450
Service revenue 3,600
Total revenue $ 18,050
Operating expenses:
Cost of goods sold 7,300
Selling 2,500
General and administrative 1,600
Total operating expenses 11,400
Operating income 6,650
Interest expense 210
Income before income taxes 6,440
Income tax expense 2,600
Net income $ 3,840

Balance Sheet Information ($ in thousands) Dec. 31, 2018 Dec. 31, 2017
Assets:
Cash $ 7,450 $ 2,290
Accounts receivable 2,700 2,300
Inventory 4,200 3,100
Prepaid rent 160 320
Plant and equipment 14,700 12,200
Less: Accumulated depreciation (5,200 ) (4,600 )
Total assets $ 24,010 $ 15,610
Liabilities and Shareholders Equity:
Accounts payable $ 1,600 $ 1,200
Interest payable 110 0
Deferred service revenue 820 610
Income taxes payable 560 820
Loan payable (due 12/31/2020) 5,200 0
Common stock 10,100 10,100
Retained earnings 5,620 2,880
Total liabilities and shareholders' equity $ 24,010 $ 15,610

Additional information for the 2018 fiscal year ($ in thousands):

Cash dividends of $1,100 were declared and paid.

Equipment costing $4,200 was purchased with cash.

Equipment with a book value of $600 (cost of $1,700 less accumulated depreciation of $1,100) was sold for $600.

Depreciation of $1,700 is included in operating expenses.

Required: Prepare Santana Industries' 2018 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King

5th Edition

0072444126, 978-0072444124

More Books

Students also viewed these Accounting questions

Question

mple 10. Determine d dx S 0 t dt.

Answered: 1 week ago