Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 6 (16 marks) (29 minutes) The following financial statements and information relate to GHU Inc. GHI Inc. Balance Sheet as at December 31 20x2

image text in transcribed

Problem 6 (16 marks) (29 minutes) The following financial statements and information relate to GHU Inc. GHI Inc. Balance Sheet as at December 31 20x2 20x1 Assets Cash $ 9,000 $ 11,000 Accounts receivable 50,000 42,700 Inventory 15,000 21,000 Prepaid rent 2,500 2,300 Property, plant and equipment 900,000 920,000 Accumulated depreciation (233,000) (225,000) $743,500 $772,000 Liabilities and Shareholders' Equity Accounts payable $ 22,900 $ 25,100 Salaries payable 1,600 1,180 Bank loan payable 66,000 146,000 Common stock 80,000 80,000 Retained earnings 573,000 519,720 $743,500 $772,000 GHI Inc. Statement of Income For the year ended December 31, 20x2 Revenue $600,000 Cost of goods sold 195,000 Gross margin 405,000 Operating expenses Salaries $90,000 Depreciation 60,000 Other 182,370 332,370 Operating income 72,630 Interest expense 3,350 Loss on sale of equipment 3,000 6,350 Net income $ 66,280 The company sold excess equipment with an original cost of $60,000. Required - Prepare a statement of cash flows for the year ended December 31, 20x2. Show your supporting calculations

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

Artificial Intelligence In Accounting Organisational And Ethical Implications

Authors: Othmar M. Lehner, Carina Knoll

1st Edition

1032055626, 9781032055626

More Books

Students also viewed these Accounting questions