Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Income statement, balance sheets, and additional Information for Video Phones, Inc. are provided. $2,456,600 VIDEO PHONES, INC. Income Statement For the Year Ended December
The Income statement, balance sheets, and additional Information for Video Phones, Inc. are provided. $2,456,600 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2821 Net sales Expenses: Cost of goods sold $1,450,000 Operating expenses 758, eee Depreciation expense 17,600 Loss on sale of land 7.ee Interest expense 10.000 Income tax expense 38, eee Total expenses Net Income 2,280.ee $ 176,000 VIDEO PHONES, INC. Balance Sheets December 31 2821 2020 $ 138,600 78,00 185, eee 8,400 $ 68,888 Se, es 125,000 4,288 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 95,000 209, eee 250, eee (57, eee) $818,eee 220,000 200,eee (40,eee) $620, eee $ 57,00 5,00 14,800 $ 71,600 B,eee 13,000 265,600 215, eee 200,000 269,00 $ 310,000 208,eee 113, een $620,000 Additional Information for 2021: 1. Purchase Investment in bonds for $95.000. 2. Sell land costing $20.000 for only $13,000, resulting in a $7.000 loss on sale of land. 3. Purchase $50,000 in equipment by Issuing a $50,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $20.000. 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.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities 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
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started