Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This assignment is due soon, I want to check my answers before I submit them. Please make sure to answer within 15 to 40 min.

This assignment is due soon, I want to check my answers before I submit them. Please make sure to answer within 15 to 40 min. Please submit what you have within 40 min, or this question is wasted and will be thumbed down. Thank you for your help in advance!

The condensed comparative statement of financial position and income statement for Nguyen Inc. as at/ for the year ended Dec. 31, 2021, are as follows:

Nguyen Inc.

Condensed Statement of Financial Position

December 31,

2021

2020

Cash

$950

$2,500

Accounts receivable

11,350

11,600

Inventory

29,000

28,000

Prepaid expenses

4,900

7,250

Equipment

34,000

28,000

Accumulated dep - equip

-13,000

-14,900

Total assets

$67,200

$62,450

Unearned revenue

4,200

3,200

Dividends payable

1,000

1,600

Loans payable

7,500

11,000

Common shares

20,000

16,000

Retained earnings

34,500

30,650

Total liabilities & share equity

$67,200

$62,450

Nguyen Inc.

Condensed Income Statement

for the Year Ended December 31, 2021

Sales revenue

$150,000

Operating expenses

109,000

Depreciation expense

6,250

Loss on sale of equipment

580

Interest expense

750

Income tax expense

10,000

126,580

Net income

$23,420

The following is additional information about Nguyens transactions during the year ended

December 31, 2021:

  1. Equipment with a net carrying value of $18,000 was sold for cash and equipment was purchased for cash.
  2. Common shares were issued of $3,500 to pay down the loan. The remaining common shares were issued for cash.
  3. The only changes in retained earnings were for net income and dividends.

Nguyen Inc. follows ASPE.

Required:

  1. Calculate cash received from customers in 2021.

  1. Prepare the entire statement of cash flows in good form for Nguyen Inc. for the year ended

December 31, 2021. (Prepare the operating activities section using the indirect method.)

  • Show your calculations below your statement.

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

More Books

Students also viewed these Accounting questions