Q.1 The financial statements for the BestBuy Store Inc. are as follows: Marks 15

INCOME STATEMENT

2019

Sales$800,0000

Cost of goods sold500,0000

Gross Profit300,0000

Selling and Operating Expense213,0000

Net Operating Income87,0000

Non-operating items: -

Gain on sale of investing7,0000

Loss on sale of equipment(40000)3,0000

Income before taxes90,0000

Income Taxes270,000

Net Income630,000

During 2019, BestBuy sold some equipment for $200,000 that had cost $400,000 and on which there was accumulated depreciation of $160,000. In addition, the company sold the long-term investment for $100,000 that had cost $30,000 when purchased several years ago. A cash dividend was paid during 2019, and the company repurchased $400,000 of its own stock. BestBuy did not retire any bonds during 2019.

BestBuy Inc.

Balance Sheet

2019

	2018	2019
Cash	150,000	90,000
Accounts Receivable	2400,000	3400,000
Inventory	1750,000	1250,000
Prepaid Expenses	60,000	100,000
Total Current Assets:	4360,000	4840,000
Property, Plant and Equipment	4700,000	6100,000
Less: Accumulated Depreciation	850,000	930,000
Net Property Plant and Equipment	3850,000	5170,000
Long Term Investment	190,000	160,000
Total Assets:	8400,000	10170,000
Accounts Payable	2300,000	3100,000
Accrued Liabilities	720,000	600,000
Income Taxes Payable	340,000	400,000
Total Current Liabilities:	3360,000	4100,000
Bonds Payable	1800,000	2900,000
Total Liabilities:	5160,000	7000,000
Common Stock	2500,000	2100,000
Retained Earnings	740,000	1070,000
Total Stockholders Equity	3,240,000	3,170,000
Total Liabilities and Stockholders Equity	8,400,000	10,170,000

Required:

Prepare a Cash Flow statement including operating, financing and investing activities. Place the bracket around the cash outlays. Operating activities should be prepared by direct Method.

Q. 2Use the information above in question no. 1. Prepare cash flows from operating activities through the Indirect Method.

Q.1 The financial statements for the BestBuy Store Inc. are a follows: Marks 15 INCOME STATEMENT 2019 Sales S800.0000 Cost of goods sold 500.000 Gross Profit 300.0000 Selling and Operating Expense 213.00.00 Net Operating Income 7.0000 Non-operating items: Gain on sale of investing 7.0000 Loss on sale of equipment Income before taxes 90,0000 Income Taxes 220.000 Net Income During 2019, BestBuy sold some equipment for 200.000 shat had cost $400,000 and on which there was accumulated depreciation of $160,000. In addition, the company sold the long-term investment for $100.000 that had cost $30,000 when purchased several years ago. A cash dividend was paid during 2019, and the company repurchased $400,000 of its own stock. BestBuy did not retire any hond during 2019 Best Buy Inc. Balance Sheet 2019 ped sperme Total Came Netry 15. . TamilC .. Tuta Tutti Sere's 100 101 Required: Prepare a Cash Flow statement including operating, financing and investing activities. Place the bracket around the cash outlays. Operating activities should be prepared by direct Method. 0.2 Use the information above in question no. 1. Prepare cash flows from operating activities through the Indirect Method