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The comparative balance sheets and income statements for Gypsy Company follow.Balance Sheets As of December 3 1 Year 2 Year 1 Assets Cash$ 2 4
The comparative balance sheets and income statements for Gypsy Company follow.Balance Sheets As of December Year Year AssetsCash$ $ Accounts receivableInventoryEquipmentAccumulated depreciationequipmentLandTotal assets$ $ Liabilities and stockholders' equityAccounts payable inventory$ $ Longterm debtCommon stockRetained earningsTotal liabilities and stockholders' equity$ $ Liabilities and stockholders' equity Accounts payable inventory $ $ Longterm debt Common stock Retained earnings Total liabilities and stockholders' equity $ $ Income Statement For the Year Ended December Year Sales revenue$ Cost of goods soldGross marginDepreciation expenseOperating incomeGain on sale of equipmentLoss on disposal of landNet income$ Additional DataDuring Year the company sold equipment for $; it had originally cost $ Accumulated depreciation on this equipment was $ at the time of the sale. Also, the company purchased equipment for $ cashThe company sold land that had cost $ This land was sold for $ resulting in the recognition of a $ loss. Also, common stock was issued in exchange for title to land that was valued at $ at the time of exchangePaid dividends of $RequiredPrepare a statement of cash flows using the indirect method.Note: Amounts to be deducted should be indicated with a minus sign.
The comparative balance sheets and income statements for Gypsy Company follow.Balance Sheets As of December Year Year AssetsCash$ $ Accounts receivableInventoryEquipmentAccumulated depreciationequipmentLandTotal assets$ $ Liabilities and stockholders' equityAccounts payable inventory$ $ Longterm debtCommon stockRetained earningsTotal liabilities and stockholders' equity$ $ Liabilities and stockholders' equity Accounts payable inventory $ $ Longterm debt Common stock Retained earnings Total liabilities and stockholders' equity $ $ Income Statement For the Year Ended December Year Sales revenue$ Cost of goods soldGross marginDepreciation expenseOperating incomeGain on sale of equipmentLoss on disposal of landNet income$ Additional DataDuring Year the company sold equipment for $; it had originally cost $ Accumulated depreciation on this equipment was $ at the time of the sale. Also, the company purchased equipment for $ cashThe company sold land that had cost $ This land was sold for $ resulting in the recognition of a $ loss. Also, common stock was issued in exchange for title to land that was valued at $ at the time of exchangePaid dividends of $RequiredPrepare a statement of cash flows using the indirect method.Note: Amounts to be deducted should be indicated with a minus sign.
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