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The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 3
The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December Net sales $ Expenses: Cost of goods sold $ Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $ VIDEO PHONES, INCORPORATED Balance Sheets December Assets Current assets: Cash $ $ Accounts receivable Inventory Prepaid rent Longterm assets: Investments Land Equipment Accumulated depreciation Total assets $ $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ $ Interest payable Income tax payable Longterm liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders equity $ $ Additional Information for : Purchased investment in bonds for $ Sold land for $ The land originally was purchased for $ resulting in a $ loss being recorded at the time of the sale. Purchased $ in equipment by issuing a $ longterm note payable to the seller. No cash was exchanged in the transaction. Declared and paid a cash dividend of $ Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note.
The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided.
VIDEO PHONES, INCORPORATED
Income Statement
For the Year Ended December
Net sales $
Expenses:
Cost of goods sold $
Operating expenses
Depreciation expense
Loss on sale of land
Interest expense
Income tax expense
Total expenses
Net income $
VIDEO PHONES, INCORPORATED
Balance Sheets
December
Assets
Current assets:
Cash $ $
Accounts receivable
Inventory
Prepaid rent
Longterm assets:
Investments
Land
Equipment
Accumulated depreciation
Total assets $ $
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ $
Interest payable
Income tax payable
Longterm liabilities:
Notes payable
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders equity $ $
Additional Information for :
Purchased investment in bonds for $
Sold land for $ The land originally was purchased for $ resulting in a $ loss being recorded at the time of the sale.
Purchased $ in equipment by issuing a $ longterm note payable to the seller. No cash was exchanged in the transaction.
Declared and paid a cash dividend of $
Required:
Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note.
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