Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following income statement and additional year-end information is provided. $2,046,000 1,002,540 1,043,460 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of
The following income statement and additional year-end information is provided. $2,046,000 1,002,540 1,043,460 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 280, 302 Depreciation expense 49,104 Rent expense 55, 242 Amortization expenses-Patents 6,138 Utilities expense 22,506 Gain on sale of equipment Net income 413, 292 630,168 8,184 638,352 $ Accounts receivable Inventory $38, 200 increase 24,075 increase Accounts payable Salaries payable $ 15,575 decrease 2,650 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities a. Equipment with a book value of $81,500 and an original cost of $162,000 was sold at a loss of $35,000. b. Paid $103,000 cash for a new truck. c. Sold land costing $325,000 for $405,000 cash, yielding a gain of $80,000. d. Long-term investments in stock were sold for $97,000 cash, yielding a gain of $16,250. Use the above information to determine cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from investing activities a. Net income was $474,000. b. Issued common stock for $78,000 cash. c. Paid cash dividend of $10,000. d. Paid $125,000 cash to settle a note payable at its $125,000 maturity value. e. Paid $119,000 cash to acquire its treasury stock. f. Purchased equipment for $90,000 cash. Use the above information to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from financing activities $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started