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Breakwater Boats sells boating accessories. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below. Breakwater Boats Balance Sheet As at August 31 2018 2017 Assets Current Assets Cash $160,705 $59,000 Accounts Receivable $80,200 $77,300 Merchandise Inventory $216,000 $195,000 Prepaid Expenses $17,200 $17.200 Total Current Assets $474.105 $348.500 Noncurrent Assets Land $0 $44,000 Equipment $334.000 $334,000 Less: Accumulated Depreciation S-27,600 S-21,300 Total Noncurrent Assets $306,400 $356,700 Total Assets $780,505 $705,200 Liabilities Current Liabilities Accounts Payable $54,300 $43,600 Notes Payable, Current Portion $6,300 $6,300 Total Current Liabilities $60,600 $49,900 Notes Payable, Long-Term Portion $61,700 $68,000 Total Liabilities $122.300 $117.900 Stockholders' Equity Common Stock $155,000 $155,000 Retained Earnings $503,205 5432.300 Total Stockholders' Equity 5658.205 $587,300 Total Liabilities and Equity $780,505 $705,200 Additional Information: During 2018, land was sold for a gain of $6,500. There was no purchase of equipment throughout the year. 5552.000 Breakwater Boats Income Statement For the Year Ended August 31, 2018 Sales Cost of Goods Sold $331,200 Gross Profit $220.800 Operating Expenses Depreciation Expense $6,300 Other Operating Expenses $67,300 Total Operating Expenses $73,600 Income from Operations $147,200 Other Income and Expenses Gain on Sale of Land $6,500 Income before Income Tax $153,700 Income Tax $53.795 Net Income $99.905 Create the cash flow statement using the indirect method. Create the cash flow statement using the indirect method. Do not enter dollar signs or commas in the input boxes Use the negative sign for a decrease in cash. Breakwater Boats Cash Flow Statement For the Year Ended August 31, 2018 Cash Flow from Operating Activities Net Income Adjustments to Reconcile Net Income to Cash Depreciation Expense Gain on Sale of Land Changes in Operating Assets and Liabilities Increase in Accounts Receivable Increase in Merchandise Inventory Increase in Accounts Payable Net Cash Provided (Used) by Operating Activities Cash Flow from Investing Activities Sale of Land Net Cash Provided (Used) by Investing Activities Cash Flow from Financing Activities Payment of Notes Payable Payment of Cash Dividend Net Cash Provided (Used) by Financing Activities Net increase (decrease) in cash Cash at the Beginning of the Year Cash at the End of the Year Behemoth Manufacturing makes and sells integrated circuit boards. At the end of 2020, the income statement and comparative balance sheet were prepared as shown below. Behemoth Manufacturing Balance Sheet As at June 30 2020 2019 Assets Current Assets Cash $300.545 $125,300 Accounts Receivable $233,300 $254.400 Merchandise Inventory $509,900 $456,800 Prepaid Expenses $21.500 $21.500 Total Current Assets $1,065,245 $858,000 Long-Term Assets Land $22.100 Equipment $341,100 $341,100 Less: Accumulated Depreciation 5-107,000 5-98,600 Total Long-Term Assets $234,100 $264.600 Total Assets $1.299,345 $1,122,600 Liabilities Current Liabilities Accounts Payable $312,900 $327,100 Notes Payable. Current Portion $33,600 $24.100 Total Current Liabilities $346,500 $351,200 Notes Payable, Long-Term Portion $214,600 $191,300 Total Liabilities $561,100 $542.500 Shareholders' Equity Common Shares $293.000 $248,000 Retained Earnings $445,245 $332.100 Total Shareholders' Equity $738.245 $580,100 Total Liabilities and Equity $1.299,345 $1,122.600 Additional Information: During 2020, land was sold for a loss of $3,700. There was no purchase of equipment throughout the year. The company did not pay off any amount of the notes payable. Behemoth Manufacturing Income Statement For the Year Ended June 30, 2020 Sales $2.449,000 Cost of Goods Sold $1,469,400 Gross Profit $979,600 Operating Expenses Depreciation Expense | $8.400 Other Operating Expenses $710.200 Total Operating Expenses $718,600 Income from Operations $261,000 Other Income and Expenses Loss on Sale of Land $-3,700 Income before Income Tax $257,300 Income Tax $90,055 Net Income $167,245 Create the cash flow statement using the indirect method. Do not enter dollar signs or commas in the input boxes Use the negative sign for a decrease in cash. Behemoth Manufacturing Cash Flow Statement For the Year Ended June 30, 2020 Cash Flow from Operating Activities Net Income Adjustments to Reconcile Net Income to Cash Depreciation Loss on Sale of Land Change in Operating Assets and Liabilities Decrease in Accounts Receivable Increase in Merchandise Inventory Decrease in Accounts Payable Net Cash Provided (Used) by Operating Activities Cash Flow from Investing Activities Sale of Land Net Cash Provided (Used) by Investing Activities Cash Flow from Financing Activities Proceeds from Notes Payable Payment of Cash Dividend issue of Common Shares Net Cash Provided (Used) by Financing Activities Net Increase (Decrease) in Cash Cash at the Beginning of the Year Cash at the End of the Year
