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. VIDEO PHONES, INC. Income Statement For the Year Ended December 31,

image text in transcribed
image text in transcribed
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $3,086, 000 Expenses Cont of goods sold $2,000,000 Operating expenses 868,000 Depreciation expense 28,000 Lons on sale of land 8,100 Interest expense 15.500 Income tax expense 49,000 Total expenses 2,968, 600 $ 117.400 Net Income VIDEO PHONES, INC Balance Sheets December 31 2021 2020 $182, 860 82.100 105,000 12,240 $152,380 61.000 136,000 6, 120 106,000 211.000 272,000 (70, 200) $901,000 242,000 211,000 (42,200) $766,300 Aaneto Current assets Canh Accounts receivable Inventory Prepaid rent Long-term onts 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 $ 56,900 6 100 15,100 92.000 10,200 14,100 287,000 226,000 310,000 215,900 $901.000 310,000 124.000 $756.300 Additional Information for 2021: 1. Purchase investment in bonds for $106,000. 2. Sell land costing $31,000 for only $22.900, resulting in a $8,100 loss on sale of land. 3. Purchase $61,000 in equipment by issuing a $61,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $25,500. 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.) $ 117,400 VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Increase in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in interest payable Increase in income tax payable 28,000 8.100 $ 153,500 Net cash flows from operating activities Cash Flows from Investing 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_2

Step: 3

blur-text-image_3

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

Cost-Benefit Analysis

Authors: Euston Quah, E.J. Mishan

5th Edition

0415350379, 9780415350372

More Books

Students also viewed these Accounting questions