Question
Question 01. McKnight Exercise Equipment, Inc., reported the following financial statements for 2018: Income Statement Sales $714,000 Cost of Goods sold $ 347,000 Depreciation $52,000
Question 01. McKnight Exercise Equipment, Inc., reported the following financial statements for 2018:
Income Statement
| Sales |
| $714,000 |
| Cost of Goods sold | $ 347,000 |
|
| Depreciation | $52,000 |
|
| Other expenses | $205,000 |
|
| Total Expenses |
| $604,000 |
| Net Income |
| $110,000 |
Comparative Balance Sheet
| Assets | 2018 | 2017 | Liabilities | 2018 | 2017 |
| Current Assets: |
|
| Current Liabilities: |
|
|
| Cash | 19000 | 18000 | A/C Payable | 73000 | 72000 |
| A/C Receivables | 54000 | 49000 | Salary payable | 2000 | 5000 |
| Inventory | 81000 | 89000 | Long term bonds | 59000 | 66000 |
| Long term investment | 95000 | 77000 | Equity: |
|
|
| Plant assets(net) | 221,000 | 183,000 | Shares | 47000 | 34000 |
|
|
|
| Retained Earnings | 289000 | 239000 |
|
| 470,000 | 416,000 |
| 470,000 | 416,000 |
From the information above make a statement of cash flows for McKnight using the indirect method.
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
