Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Taser Corporations recent comparative balance sheet and income statement follow. Balance Sheets, December 31 Prior Year Current Year Assets Cash and cash equivalents $93,600 $153,120

Taser Corporations recent comparative balance sheet and income statement follow.

Balance Sheets, December 31 Prior Year Current Year
Assets
Cash and cash equivalents $93,600 $153,120
Accounts receivable (net) 163,200 163,200
Merchandise inventory 374,400 408,000
Investments, long-term 48,000
Plant assets 808,800 866,400
Accumulated depreciation (211,200) (163,200)
Total assets $1,228,800 $1,475,520
Liabilities and Stockholders Equity
Accounts payable $100,800 $91,200
Salaries payable 7,200 2,400
Income taxes payable 9,600 16,800
Bonds payable 480,000 480,000
Premium on bonds payable 19,200 17,760
Common stock, no-par 576,000 746,400
Retained earnings 36,000 120,960
Total liabilities and stockholders equity $1,228,800 $1,475,520

Income Statement, For Year Ended December 31 Current Year
Sales revenue $576,000
Cost of goods sold (230,400)
Depreciation expense (28,800)
Salaries expense (105,600)
Income tax expense (48,000)
Interest expense (33,600)
Other expenses (11,040)
Gain on sale of plant assets 14,400
Net income $132,960

Additional information

1. Purchased a plant asset, $144,000; issued common stock in full payment.

2. Purchased a long-term investment in equity securities for cash, $48,000.

3. Declared and paid cash dividend, $48,000.

4. Sold a plant asset for $24,000 cash (cost, $86,400; accumulated depreciation, $76,800).

5. Issued common stock, 2,400 shares at $11 per share cash.

Prepare the operating activities section of the statement of cash flows, using the direct method.

Note: Use negative signs with amounts for cash outflows.

image text in transcribed

Only looking for Payments for interest! The answer is not -33,600 nor +33,600 Please help :(

Cash Flows from Operating Activities Collections from customers Payments to suppliers Payments for salaries Payments for income taxes Payments for interest Other expenses $ 576,000 (273,600) (110,400) (40,800) Net cash provided (used) by operating activities $ (33,600) x (11,040) 173,760 x

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062

More Books

Students also viewed these Accounting questions

Question

Using Gauss-Jordan elimination, invert this matrix ONLY 0 0 0 0 1

Answered: 1 week ago