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This is finanacial accouting. Please complete fully the requirements for the Direct and Indirect Method. Thank you so much! Shiloh Make-up Corp retails high-end, organic
This is finanacial accouting. Please complete fully the requirements for the Direct and Indirect Method. Thank you so much!
Shiloh Make-up Corp retails high-end, organic make-up retailer. For 2020 Shiloh has the follow financial statements. Shiloh Make-up Corp Income Statement Year Ended December 31, 2020 Shiloh Make-up Corp Comparative Statement of Financial Position December 31, 2020 2020 2019 Cash $ 83,600 $ 2,000 Accounts receivable 58,000 65,000 Inventory 80,000 108,000 Prepaid rent 5,000 4,000 Equipment 259,000 210,000 Accumulated depreciation - 75,000- 70,000 Goodwill 40,000 50,000 Total Assets 450,600 369,000 $554,300 165,000 389,300 120,000 269,300 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Impairmentloss-goodwill Loss on disposal of equipment Income before income tax Income tax expense Net income 17,500 10,000 5,000 32,500 236,800 59,200 $177,600 Accounts payable 76,000 88,000 Income tax payable 4,000 6,000 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,000 10,000 Long-term loans payable 60,000 69,000 Common shares 155,000 130,000 Retained earnings 139,600 62,000 Total Liabilities and SHE $ 450,600 $ 369,000 Additional information for 2020: a) A piece of equipment that originally cost $50,000 and was 75% depreciated, was sold. Any other equipment purchases during the year would have been paid for in cash. b) Salaries and Wages are maintained in Operational Expenses and was $50,000 for the period. All other indirect expenses, such as Sales, Administration, and Depreciation are also maintained in Operational Expenses. c) Historically, Shiloh has placed its interest expenses in its Operational Activities and its dividends in its Financial Activities. Required: Complete Shiloh Make-up Corp's 2020 Statement of Cash Flows using both the Direct and Indirect MethodStep by Step Solution
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