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The income statement, balance sheets, and additional information for Cloud Mangu are provided. Net sales Expenses: CLOUD MANGU Income Statement For the Year Ended
The income statement, balance sheets, and additional information for Cloud Mangu are provided. Net sales Expenses: CLOUD MANGU Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense. Loss on sale of land Interest expense Income tax expense Total expenses Net income $ 2,200,000 908,000 32,000 8,500 17,500 53,000 CLOUD MANGU Balance Sheets December 31 $ 3,386,000 3,219,000 $ 167,000 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 270,300 86,500 105,000 $ 185,900 65,000 140,000. 6,600 13,200 110,000 215,000 280,000 (75,000) $ 1,005,000 0 250,000 215,000 (43,000) $ 819,500 $ 70,500 6,500 15,500 $ 86,000 11,000 14,500 295,000 230,000 350,000 350,000 267,500 128,000 $ 819,500 $ 1,005,000 Additional Information for 2024: 1. Purchased investment in bonds for $110,000. 2. Sold land for $26,500. The land originally was purchased for $35,000, resulting in a $8,500 loss being recorded at the time of the sale.. 3. Purchased $65,000 in equipment by issuing a $65,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $27,500. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. Note: Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign. Cash Flows from Operating Activities: CLOUD MANGU Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities. Cash Flows from Investing Activities: Net cash flows from investing activities. Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0 0 0 $ 0
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