Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 2018 income statement and comparative balance sheet of All Wired, Inc. follow: (Click the icon to view the income statement.) All Wired, Inc. Income

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The 2018 income statement and comparative balance sheet of All Wired, Inc. follow: (Click the icon to view the income statement.) All Wired, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 441,000 201,200 Cost of Goods Sold Gross Profit 239,800 Operating Expenses: Salaries Expense Depreciation Expense-Plant Assets $ 78,400 14,800 10,500 Other Operating Expenses 103,700 Total Operating Expenses Operating Income Other Income and (Expenses): 136,100 Interest Revenue 8,900 (21,800) Interest Expense Total Other Income and (Expenses) (12,900) Net Income Before Income Taxes 123,200 10 Ann Net Income Before Income Taxes 123,200 19,400 Income Tax Expense $ 103,800 Net Income All Wired, Inc. Comparative Balance Sheet December 31, 2018 and 2017 n a 2018 2017 Assets Current Assets: Cash $ 26,300 $ 400 Accounts Receivable 26,900 25,300 80,000 91,600 Merchandise Inventory Long-term Assets: Land 34,500 9,000 Plant Assets 123,980 (19,080) 104,380 (14,680) Accumulated Depreciation-Plant Assets $ 272,600 $ 231,000 Total Assets Liabilities Current Liabilities: Accounts Payable 35,900 $ 30,600 Accrued Liabilities 28.900 30,100 28,900 30,100 Accrued Liabilities Long-term Liabilities: 72,000 100,000 Notes Payable Total Liabilities 136,800 160,700 Stockholders' Equity Common Stock, no par 88,700 47,100 64,900 5,400 Retained Earnings 135,800 70,300 Total Stockholders' Equity 272,600 $ 231,000 Total Liabilities and Stockholders' Equity Question * Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment? Print Done Additionally, All Wired purchased land of $25,500 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $10,400. The plant acquisition was for cash

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

College Accounting A Practical Approach

Authors: Jeffrey Slater, Debra Good

14th Canadian Edition

0135222419, 978-0135222416

More Books

Students also viewed these Accounting questions