Question
The following represents the financial statements for Randall Company at the end of December 31, 2015. Randall Company Comparative Statement of Financial Position As of
The following represents the financial statements for Randall Company at the end of December 31, 2015.
Randall Company
Comparative Statement of Financial Position
As of December 31, 2015
12/31/2015 | 12/31/2014 | |
Equipment | 154 000 | 130 000 |
Accumulated depre - equipment | (35 000) | (25 000) |
Copyrights | 46 000 | 50 000 |
Inventory | 40 000 | 60 000 |
Prepaid rent | 5 000 | 4 000 |
Accounts Receivable | 62 000 | 49 000 |
Short term Investments - trading | 35 000 | 18 000 |
Cash | 6 000 | 9 000 |
Total assets | 313 000 | 295 000 |
Share Capital ordinary $10 par | 100 000 | 100 000 |
Share Premium - ordinary | 30 000 | 30 000 |
Retained Earnings | 57 000 | 36 000 |
Long term loans payable | 60 000 | 67 000 |
Accounts Payable | 46 000 | 42 000 |
Income taxes payable | 4 000 | 6 000 |
Salaries and Wages payable | 8 000 | 4 000 |
Short term loans payable | 8 000 | 10 000 |
Total equity and liabilities | 313 000 | 295 000 |
Randall Company
Income Statement
For the year ended December 31, 2015
Sales Revenue | 338 150 | |
Cost of Goods sold | 175 000 | |
Gross Margin | 163150 | |
Operating Expense | 120 000 | |
Operating Income | 43 150 | |
Interest Expense | 11 400 | |
Gain on sale of equipment | 2 000 | 9 400 |
Income before tax | 33 750 | |
Income tax expense | 6 750 | |
Net Income | 27 000 |
Additional Information:
- Dividends in the amount of $6 000 were declared and paid during 2015.
- Depreciation expense and amortization expense are included in operating expenses.
- No unrealized gains or losses have occurred on the investments during the year.
- Equipment that had a cost of $30,000 and 70% depreciated was sold during 2015.
Instructions
Prepare a statement of cash flows using the Indirect Method.
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