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Question - 15 percent Win Company's income statement for the year ended December 31, 2020 and the company's comparative statement of financial position for year
Question - 15 percent Win Company's income statement for the year ended December 31, 2020 and the company's comparative statement of financial position for year 2019 and 2020 are as follows: ta 3,645.000 2.360.000 1.285.000 Win Company Income Statement For the year ended December 31, 2020 Sales. Less Cost of goods sold... Gross Profit... Less Operating expenses: Selling and Administrative expenses. Income from operation... Other income and expenses Gain on sales of land. 50.000 Loss on sales of equipment. (10,000) Interest expense. (30.000 Income before taxes... Less Income taxes.... Net income. 930,000 355,000 10,000 365,000 80,000 5 285.000 Win Company Statement of Financial Position As of December 31, 2020 2019 Assets Cash... 78,500 36,000 Accounts Receivable (net). 616,000 427.000 Merchandise Inventory. 608,000 620,000 Prepaid Rent... 10,000 3,000 Land.... 80,000 130,000 Building (net). 96,500 70,000 Equipment (net)... 1,755,000 1.240,000 Patent 84.000 90.000 Total Assets $3.328,000 $2.618.000 Liabilities and Stockholders' Equity Accounts Payable. 875,000 570,000 Interest Payable.... 5.000 3,000 Income Taxes Payable. 133,000 118,000 Accrued Liabilities.. 25,000 42,000 Long Term Notes Payable... 620,000 400,000 Common Stock... 1,000,000 1,000,000 Retained Earnings 670.000 485.000 Total Liabilities & Stockholders' Equity... $3.328,000 $2.618,000 Additional data for the year 2020 a. Cash dividends declared and paid to the common stockholders' during the year. b. Long-term notes payable with a value of $200,000 were repaid during the year. c. Depreciation expense of building for the year total $23.500 d. Depreciation expense of equipment for the year total 5105,000. e. A new equipment was purchased for cash and an old equipment was sold for cash during the year. The old equipment sold has its book value at the time of sales at $90,000 f. There was not any further investment of patent during the period g. During 2020, company purchased a partial of land $100,000 for cash. h. Additional building was purchased during the year for cash. Your Answer Here Amount Effect in Cash Inflow or Outflow Determine the amount of each transaction below. 1. Income taxes paid. 2 Interest expenses paid. e 3. Cost of the additional building purchased. e 4 Cash sales of equipment. 5. Cost of the new equipment purchased. 6. Dividends paid 7 Cash sales of land. e 8 Net cash flows from investing activities. 9. Issuance of Long-Term Notes Payable for cash 10. Net cash flows from financing activities
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