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Problem 11-7A Calculate operating activities - direct method (LO11-5) The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. 2,636,000 VIDEO
Problem 11-7A Calculate operating activities - direct method (LO11-5) The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. 2,636,000 VIDEO PHONES, INC Income Statement For the Year Ended December 31, 2018 Net sales Expenses Cost of goods sold $ 1,600,000 Operating expenses 788,000 Depreciation expense 20,000 Loss on sale of land 7,300 Interest expense 11,500 Income tax expense 41,000 Total expenses 2,467,800 Net income 168,200 VIDEO PHONES, INC. Balance Sheets December 31 2018 2017 $ $ Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation 159.180 73,300 105,000 9,120 85,940 53,000 128,000 4,560 98,000 203,000 256,000 (60,600) 226,000 203,000 (40,600) Total assets $ 843,000 $ 659,900 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 59,700 $ 5,300 14,300 74,000 8.600 13,300 271,000 218,000 230,000 262,700 230,000 116,000 Total liabilities and stockholders' equity 843,000 $ 659,900 Additional Information for 2018: 1. Purchase investment in bonds for $98,000. 2. Sell land costing $23,000 for only $15,700, resulting in a $7.300 loss on sale of land. 3. Purchase $53,000 in equipment by borrowing $53,000 with a note payable due in three years. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $21.500 Prepare the statement of cash flows for Vidio Planes, Inc, using the direct method Disclose any noncash transactions in an accompanying note (List cash outflows and VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2018 Cash Flows from Operating Activities Cash received from customers Cash paid to suppliers Cash paid for income taxes Cash paid for interest Cash paid for operating expenses $ Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note Noncash Activities 0 ONE
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