Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. $2,936,000 VIDEO PHONES, INC. Income Statement For the Year Ended December

image text in transcribed
image text in transcribed
image text in transcribed
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. $2,936,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $1,850,000 Operating expenses 838,000 Depreciation expense 25,000 Loss on sale of land 7.00 Interest expense 14.ee Income tax expense 46, eee Total expenses Net income 2,780.800 $ 155,200 VIDEO PHONES, INC. Balance Sheets December 31 2021 2021 2020 Current assets $ 193,40 78.800 105,000 10,320 $127,840 58,000 133.000 5,160 103,000 200,000 266,000 (66,600) $ 898,000 236,000 205,000 (41,600) $726,400 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: Coran stock Retained earnings Total liabilities and stockholders' equity $ 64,200 5,800 14,800 $ 79,000 9.600 13,800 281,000 223,000 280,000 252,200 $ 898,000 280.000 121,000 $726,469 Additional Information for 2021: L Purchase investment in bonds for $103.000 2. Sell land costing $28.000 for only $20,200, resulting in a $7,800 loss on sale of land. 3. Purchase $58,000 in equipment by issuing a $58,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $24,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile not income to not 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 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities h Net cash flows from operating activities Cash Flows from Investing Activities time Terences Net cash flows from investing activities Cash Flows from Financing Activities AS Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note Noncash Activities

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

Auditing and Assurance Services Understanding the Integrated Audit

Authors: Karen L. Hooks

1st edition

471726346, 978-0471726340

More Books

Students also viewed these Accounting questions

Question

What are the two data processing approaches used in modern systems?

Answered: 1 week ago

Question

305 mg of C6H12O6 in 55.2 mL of solution whats the molarity

Answered: 1 week ago

Question

=+Can the readability be improved?

Answered: 1 week ago

Question

=+Is the writing as concise as it could be?

Answered: 1 week ago

Question

=+Is the writing clear? If not, how can it be improved?

Answered: 1 week ago