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The Star OS FINS -74B. (Learning Objectives 2. 3. 4. Prepare the statement of cash flows-indirect and inct methods) The comparative balance of Mary McGuire

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The Star OS FINS -74B. (Learning Objectives 2. 3. 4. Prepare the statement of cash flows-indirect and inct methods) The comparative balance of Mary McGuire Design Studio, 30, 2018 and 2017, and transaction data for fiscal 2018. are as follows: LO 2, 3, 4 Mary McGuire Design Studio, Inc. Comparative Balance Sheets 4 Current assets: 2018 2017 (Decrease) $ 1,600S 2.000 Accounts receivable Inventories 8 Prepaid expenses 9 Land 10 Equipment, net 11 Long-term investment 28,900 59.000 97.700 3,700 22 200 74 800 22.000 308,300 27 300 7,000 37200 1.600 70.600) 60.500 2.100 92,800 73.300 5.200 287.500 5 16.800 2012100 $ 5 19.000 41.500 14.800 13 Current liabilities: 14 Notes payable short-term 15 Accounts payable 16 Income tax payable 17 Accrued liabilities 18 Interest payable 19 Salary payable 20 Long-term note payable 21 Common stock 22 Retained earnings 16.100) 7 200) (1.400) 5.600 1.000 12.900 $ 34.300 13.400 14,900 4,000 4800 50.700 68.100 105.200 308,300 $ 1600 3.000 3.200 93.800 61.500 41.400 287.500 149.1003 6.600 20.800 Transaction data for the year ended June 30, 2018, follows: a. Net income, $71,000 b. Depreciation expense on equipment, $14,000 c. Purchased a long-term investment with cash, $16,800 d. Sold land for $63,600, including a $7,000 loss e. Acquired equipment by issuing a long-term note payable, $15,500 f. Paid off a long-term note payable, $58,600 g. Received cash for the issuance of common stock. $500 h. Paid cash dividends, $7,200 i. Paid off a short-term note payable by issuing common stock, S6,100 Requirements 1. Prepare the statement of cash flows of Mary McGuire Design Studio for the year ended June 30, 2018, using the indirect method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. All current account changes except for the short-term Notes Payable changes result from operating transactions. 2. Prepare a supplementary schedule showing cash flows from operations using the direct method. The accounting records provide the following: collections from customers $260.000; interest received, $1,900: payments to suppliers, S158,600: payments to employees. 40.200: navments for income tax, $12,000, and payment of interest, $4.700

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