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. $3,536,080 VIDEO PHONES, INC. Income Statement For the Year Ended December

image text in transcribed
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. $3,536,080 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $2,350,000 Operating expenses 938,000 Depreciation expense 35,000 Loss on sale of land 8,888 Interest expense 19,90 Income tax expense 56,000 Total expenses Net income 3,406,800 $ 129,200 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 260,880 89,800 105,000 13,920 $ 211,040 68,000 143,000 6,960 113,000 218,000 286,000 (78,600) $1,008,000 256,000 218,000 (43,600) $859,480 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 73,200 6,800 15,800 $ 89,00 11,609 14,800 301,080 233,000 380,000 231,200 $1,008,000 380,000 131,000 $859,400 Additional Information for 2021: 1. Purchase investment in bonds for $113,000 2. Sell land costing $38,000 for only $29,200, resulting in a $8,800 loss on sale of land 3. Purchase $68,000 in equipment by issuing a $68,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $29.000 Required: Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions in an accompanying note (List cash outflows and any decrease in cosh as negative amounts.) Endle Cash Flows from Operating Activities: $ 0 Net cash flows from operating activities Cash Flows from Investing Activities 0 Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities 0 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

The Internal Auditor At Work A Practical Guide To Everyday Challenges

Authors: K. H. Spencer Pickett

1st Edition

0471458392, 978-0471458395

More Books

Students also viewed these Accounting questions

Question

Explain what scientific methods are and why they are important.

Answered: 1 week ago