Testbank Multiple Choice Question 51 Vaughn Manufacturing has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Vaughn Manufacturing for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 Cash S407000 $184000 Accounts receivable 399000 214900 Inventory 383000 479000 Property, plant and equipment $609000 $951000 Less accumulated depreciation 320000) 289000 304000)657000 $1438000 $1544200 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 176000 350000 359000 214750 338250 $1438000 4000 390000 599000 21:5000 246000 $1544000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue 58390000 Cost of sales 7150000 Gross profit 1240000 Selling expenses $S99000 Administrative expenses 191000 790000 Income from operations 450000 Interest expense 71000 Income before taxes 379000 Income taxes 94750 Net Income $ 284250 The following additional data were provided: 1. Dividends for the year 2022 were $192000. 2. During the year, equipment was sold for $239000. This equipment cost $354000 originally and had a book value of $289000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The net cash provided by operating activities is $234250. $408250. O $194250 $284250 Click if you would like to show Work for this question: Open Show Work Testbank Multiple Choice Question 54 Swifty Corporation has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Swifty Corporation for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 12/31/21 Cash 5408000 Accounts receivable 359000 Inventory 383000 Property, plant and equipment $608000 Less accumulated depreciation (322000) 28.6000 $1436000 $ 193000 214000 482000 $958000 (304000) 654000 $1543000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 175000 350000 361000 205750 344250 $1436000 $ 8000 391000 601000 215000 238000 $1543000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue $8410000 Cost of sales 7154000 Gross profit 1256000 Selling expenses $599000 Administrative expenses 191000 790000 Income from operations 466000 Interest expense 71000 Income before taxes 395000 Income taxes 98750 Net income 5.296250 The following additional data were provided: 1. Dividends for the year 2022 were $190000. 2. During the year, equipment was sold for $242000. This equipment cost $354000 originally and had a book value of $286000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Under the direct method, the total taxes paid is $139750 $98750 $41000 O $58000 Click if you would like to Show Work for this question: Open Show Work
