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TUTUTE Tu Cu DecemDet 317 ZUZU Sales revenue $241,800 Cost of goods sold 176,900 Gross profit 64,900 Operating expenses 23,850 Income from operations 41,050 Interest
TUTUTE Tu Cu DecemDet 317 ZUZU Sales revenue $241,800 Cost of goods sold 176,900 Gross profit 64,900 Operating expenses 23,850 Income from operations 41,050 Interest expense 3,050 Income before income taxes 38,000 Income tax expense 7.450 Net income $30,550 Additional data: 1. 2. Dividends declared and paid were $30,000. During the year, equipment was sold for $8,000 cash. This equipment cost $19,000 originally and had a book value of $8,000 at the time of sale, All depreciation expense, $16,950, is in the operating expenses. All sales and purchases are on account. 3. 4 NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Cash Flows from Operating Activities Depreciation Expense $ Increase in Accounts Receivable 12350 Increase in Inventory Increase in Accounts Payable Increase in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Net Cash Provided by Investing Activities v Cash Flows from Financing Activities Redemption of Bonds Issuance of Common Stock Payment of Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Total $35,750 32,050 26,500 59,000 (29,700) $123,600 $20,950 19,700 20,650 78,000 (23,750) $115,550 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,550 7,400 26,500 17,150 44,000 $123,600 $ 16,650 8,450 33,150 13,850 43,450 $115,550
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