Question
Speedofflight Cars sells car accessories. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below. Speedofflight Cars Balance
Speedofflight Cars sells car accessories. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below.
Speedofflight Cars
Balance Sheet
As at January 3120182017AssetsCurrent AssetsCash$166,705$63,100Accounts Receivable$89,100$94,500Merchandise Inventory$212,000$190,700Prepaid Expenses$12,700$12,700Total Current Assets$480,505$361,000Noncurrent AssetsLand$0$38,000Equipment$330,000$330,000Less: Accumulated Depreciation$-25,500$-23,900Total Noncurrent Assets$304,500$344,100Total Assets$785,005$705,100LiabilitiesCurrent LiabilitiesAccounts Payable$52,700$46,400Notes Payable, Current Portion$7,000$7,000Total Current Liabilities$59,700$53,400Notes Payable, Long-Term Portion$62,000$69,000Total Liabilities$121,700$122,400Stockholders' EquityCommon Stock$153,000$153,000Retained Earnings$510,305$429,700Total Stockholders' Equity$663,305$582,700Total Liabilities and Equity$785,005$705,100
Additional Information:
During 2018, land was sold for a gain of $7,500. There was no purchase of equipment throughout the year.
Speedofflight Cars
Income Statement
For the Year Ended January 31, 2018Sales$566,000Cost of Goods Sold$339,600Gross Profit$226,400Operating ExpensesDepreciation Expense$1,600Other Operating Expenses$60,600Total Operating Expenses$62,200Income from Operations$164,200Other Income and ExpensesGain on Sale of Land$7,500Income before Income Tax$171,700Income Tax$60,095Net Income$111,605
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.
Speedofflight Cars
Cash Flow Statement
For the Year Ended January 31, 2018Cash Flow from Operating ActivitiesNet IncomeAnswer
Adjustments to Reconcile Net Income to CashDepreciation ExpenseAnswer
Gain on Sale of LandAnswer
Changes in Operating Assets and LiabilitiesIncrease in Accounts ReceivableAnswer
Increase in Merchandise InventoryAnswer
Increase in Accounts PayableAnswer
Net Cash Provided (Used) by Operating ActivitiesAnswer
Cash Flow from Investing ActivitiesSale of LandAnswer
Net Cash Provided (Used) by Investing ActivitiesAnswer
Cash Flow from Financing ActivitiesPayment of Notes PayableAnswer
Payment of Cash DividendAnswer
Net Cash Provided (Used) by Financing ActivitiesAnswer
Net increase (decrease) in cashAnswer
Cash at the Beginning of the YearAnswer
Cash at the End of the YearAnswer
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