Question
Required Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report its operating activities using the indirect method. Identify the
Required Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report its operating activities using the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events. a. Net income was $158,100. b. Accounts receivable decreased. c. Inventory decreased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $38,600. g. Sold equipment costing $51,000, with accumulated depreciation of $22,850, for $26,050 cash. This yielded a loss of $2,100. h. Purchased equipment costing $113,250 by paying $43,250 cash and (i.) by signing a long-term note payable for the balance. j. Borrowed $5,000 cash by signing a short-term note payable. k. Paid $47,500 cash to reduce the long-term notes payable. l. Issued 3,000 shares of common stock for $15 cash per share. m. Declared and paid cash dividends of $53,600.
GAZELLE CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Prepaid expenses $123,450 61,550 77,100 80.750 240,600 250,700 17,000 456,250 410,000 262,250 200,000 (110,750) (95,000) $607,750 $515,000 15,100 GAZELLE CORPORATION Income Statement For Year Ended December 31, 2017 Equipment Accum, depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities. Long-term notes payable Total liabilities Equity Common stock, $5 par Paid-n capital in excess Sales Cost of goods sold Gross profit. $1,185,000 595,000 590,000 17.750 $102.000 10,000 32,750 112,000 77,500 132,750 189,500 15,000 Operating expenses 10000 189,500 Tatal operating espenses s 38,600 362,850 Other expenses 401,450 188,550 215,000200,000 Other gains (losses) Income before taxes ncome taxes expense Net income (2, 100) 186.450 28,350 S 158,100 of par, common stock.... Retained earnings 30,000 230,000 125.500 607.750 $515,000Step by Step Solution
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