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The 2 0 2 2 comparative balance sheet and income statement of All Wired, Inc., follow: ALL WIRED, INC. Comparative Balance Sheet December 3 1
The comparative balance sheet and income statement of All Wired, Inc., follow: ALL WIRED, INC. Comparative Balance Sheet December and Increase Decrease Current assets: Cash and cash equivalents $ $ $ Accounts receivable $ $ $ Inventories $ $ $ Plant assets: Land $ $ $ Equipment, net $ $ $ Total assets $ $ $ Current liabilities: Accounts payable $ $ $ Accrued liabilities $ $ $ Longterm liabilities: Notes payable $ $ $ Stockholders equity: Common stock $ $ $ Retained earnings $ $ $ Total liabilities and stockholders equity $ $ $ ALL WIRED, INC. Income Statement Year Ended December Revenues: Sales revenue $ Interest revenue $ Total revenues $ Expenses: Cost of goods sold $ Salary expense $ Depreciation expense $ Other operating expense $ Interest expense $ Income tax expense $ Total expenses $ Net income $ Additionally, All Wired purchased land of $ by financing it with long term notes payable during During the year, there were no sales of land or equipment, no additional issuances of notes payable, no retirements of stock, and no treasury stock transactions. Requirements Prepare the statement of cash flows, formatting operating activities by the indirect method. How will what you learned in this problem help you evaluate an investment?Purpose of the statement and preparing the statement of cash flowsindirect method National Reserve Rare Coins NRRC was formed on January Additional data for the year follows: a On January NRRC issued common stock for $ b Early in January, NRRC made the following cash payments: For store fixtures, $ For inventory, $ For rent expense on a store building, $ c Later in the year, NRRC purchased inventory on account for $ Before yearend, NRRC paid $ of this account payable. d During NRRC sold units of inventory for $ each. Before year end, the company collected of this amount. Cost of goods sold for the year was $ and ending inventory totaled $ e The store employs three people. The combined annual payroll is $ of which NRRC still owes $ at yearend. f At the end of the year, NRRC paid income tax of $ g Late in NRRC paid cash dividends of $ h For equipment, NRRC uses the straightline depreciation method, over five years, with zero residual value. Requirements What is the purpose of the cash flow statement? Prepare NRRCs income statement for the year ended December Use the singlestep format, with all revenues listed together and all expenses listed together. Prepare NRRCs balance sheet at December Prepare NRRCs statement of cash flows using the indirect method for the year ended December
The comparative balance sheet and income statement of All Wired, Inc., follow:
ALL WIRED, INC.
Comparative Balance Sheet
December and
Increase
Decrease
Current assets:
Cash and cash equivalents $ $ $
Accounts receivable $ $ $
Inventories $ $ $
Plant assets:
Land $ $ $
Equipment, net $ $ $
Total assets $ $ $
Current liabilities:
Accounts payable $ $ $
Accrued liabilities $ $ $
Longterm liabilities:
Notes payable $ $ $
Stockholders equity:
Common stock $ $ $
Retained earnings $ $ $
Total liabilities and stockholders equity $ $ $
ALL WIRED, INC.
Income Statement
Year Ended December
Revenues:
Sales revenue $
Interest revenue $
Total revenues $
Expenses:
Cost of goods sold $
Salary expense $
Depreciation expense $
Other operating expense $
Interest expense $
Income tax expense $
Total expenses $
Net income $
Additionally, All Wired purchased land of $ by financing it with long term notes payable during During the year, there were no sales of land or equipment, no additional issuances of notes payable, no retirements of stock, and no treasury stock transactions.
Requirements
Prepare the statement of cash flows, formatting operating activities by the indirect method.
How will what you learned in this problem help you evaluate an investment?Purpose of the statement and preparing the statement of cash flowsindirect method
National Reserve Rare Coins NRRC was formed on January Additional data for the year follows:
a On January NRRC issued common stock for $
b Early in January, NRRC made the following cash payments:
For store fixtures, $
For inventory, $
For rent expense on a store building, $
c Later in the year, NRRC purchased inventory on account for $ Before yearend, NRRC paid $ of this account payable.
d During NRRC sold units of inventory for $ each. Before year end, the company collected of this amount. Cost of goods
sold for the year was $ and ending inventory totaled $
e The store employs three people. The combined annual payroll is $ of which NRRC still owes $ at yearend.
f At the end of the year, NRRC paid income tax of $
g Late in NRRC paid cash dividends of $
h For equipment, NRRC uses the straightline depreciation method, over five years, with zero residual value.
Requirements
What is the purpose of the cash flow statement?
Prepare NRRCs income statement for the year ended December Use the singlestep format, with all revenues listed together and all expenses listed together.
Prepare NRRCs balance sheet at December
Prepare NRRCs statement of cash flows using the indirect method for the year ended December
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