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USE INFO (1ST PICTURE) TO FILL OUT CHART (2ND PICTURE): Ex 10: Prepare a Cash Flow Statement for Genesis: GENESIS Income Statement For Year Ended
USE INFO (1ST PICTURE) TO FILL OUT CHART (2ND PICTURE):
Ex 10: Prepare a Cash Flow Statement for Genesis: GENESIS Income Statement For Year Ended December 31, 2015 $590.000 $300.000 Sales Cost of goods sold Wages and other operating expenses Interest expense --- Depreciation expense. 216.000 7.000 24.000 (547,000) 43.000 (6.000) 16.000 Other gains (losses) Loss on sale of plant assots Gain on retirement of notes Income before taxes. Income taxes expense Net Income 10.000 53.000 (15.000) $ 38,000 GENESIS Balance Sheets December 31, 2015 and 2014 2015 2014 Assets Current assets Cash..----- Accounts receivable Inventory Prepaid expenses. Total current assets. Long-term assets Plant assets Accumulated depreciation. Total assets.. $ 17.000 60.000 84.000 6.000 167.000 $ 12.000 40.000 70,000 4.000 126.000 250,000 210.000 (60.000) (48.000) $357.000 $288.000 Liabilities Current liabilities Accounts payable. Interest payable. Income taxes payable Tocal current liabilities Long-term notes payable. Total liabilities $ 35.000 3.000 22.000 60.000 90.000 150.000 $ 40.000 4.000 12.000 56.000 64.000 120.000 Equity Common stock. $5 par Retained earnings Total equity-..... Total liabilities and equity 95.000 112,000 207.000 $357.000 80.000 88.000 168.000 $288.000 Additional information on Genesis Inc.'s 2015 transactions: a. The accounts payable balances result from inventory purchases. b. Purchased $60,000 in plant assets by Issuing $60,000 of notes payable. c. Sold plant assets with a book value of $8,000 (original cost of $20,000 and accumulated depreciation of $12,000) for $2,000 cash, yielding a $6,000 loss. d. Received $15,000 cash from issuing 3,000 shares of common stock. e. Paid $18,000 cash to retire notes with a $34,000 book value, yielding a $16,000 gain. f. Declared and paid cash dividends of $14,000. Amount GENESIS Statement of Cash Flow For Year Ended Cash flow from Operating Activities: Net Income: Add: Deprecation/Amortization Expense: Loss on sale of long term asset: Decrease in Current Assets other than Cash: Increase in Current Liability Deduct: Gain on sale of long term asset Increase in Current Assets other than Cash Decrease in Current Liability Net Cash Provided By / Used For Operating Activities: Cash flow from Investing Activities: Add: Cash Received from Sale of long-term assets Deduct: Cash Paid to purchase long-term assets Net Cash Provided By / Used For Investing Activities: Cash flow from Financing Activities: Add: Cash received from issuing stock Cash received from sale of Treasury stock Cash Received from issuing Bond/Note payable Deduct: Cash paid to purchase Treasury Stock Cash payments of Note/Bond Payable Cash Payments of Dividends Net Cash Provided By / Used For Financing Activities: Net Increase / Decrease in Cash Beginning Cash Balance Ending Cash BalanceStep by Step Solution
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