Question
Use the Financial Statements for Moon Walk Inc. to complete the following questions. Moon Walk Inc. Comparative Statement of Income for the 12 months ending
Use the Financial Statements for Moon Walk Inc. to complete the following questions.
Account | 2024 | 2023 | 2022 |
---|---|---|---|
Revenue | 1,234,567 | 1,110,934 | 1,008,900 |
Cost of Goods Sold | 604,000 | 609,000 | 580,000 |
Gross Profit | 630,567 | 501,934 | 428,900 |
Salaries | 220,000 | 200,000 | 180,000 |
Rent | 60,000 | 60,000 | 60,000 |
Interest Expense | 40,000 | 20,000 | 20,000 |
Depreciation Expense | 35,000 | 25,000 | 22,000 |
Amortization Expense | 12,000 | 12,000 | 12,000 |
Loss/(Gain) on Disposal of Assets | 15,000 | (20,000) | 5,000 |
Total Operating Expenses | 382,000 | 297,000 | 299,000 |
Net Income | 248,567 | 204,934 | 129,900 |
Account | 2024 | 2023 | 2022 |
---|---|---|---|
Cash | 2,384,435 | 762,141 | 690,200 |
Accounts Receivable, net of bad debt allowance | 600,000 | 550,000 | 700,000 |
Inventory | 450,000 | 420,000 | 400,000 |
Prepaid Expenses | 100,000 | 120,000 | 110,000 |
Total Current Assets | 3,534,435 | 1,852,141 | 1,900,200 |
Property, Plant, and Equipment , net of depreciation | 2,372,000 | 2,415,000 | 2,330,000 |
Intangible Assets, net of amortization | 126,000 | 138,000 | 150,000 |
Total Non-current assets | 2,498,000 | 2,553,000 | 2,480,000 |
TOTAL ASSETS | 6,032,435 | 4,405,141 | 4,380,200 |
Accounts Payable | 300,000 | 360,000 | 290,000 |
Interest Payable | 80,000 | 50,000 | 65,000 |
Income Taxes Payable | 49,714 | 40,987 | 25,980 |
Total Current Liabilities | 429,714 | 450,987 | 380,980 |
Bonds Payable | 2,000,000 | 500,000 | 1,000,000 |
Total Liabilities | 2,429,714 | 950,987 | 1,380,980 |
Common Stock | 500,000 | 500,000 | 300,000 |
Additional Paid in Capital | 750,000 | 750,000 | 650,000 |
Retained Earnings | 2,352,721 | 2,204,154 | 2,049,220 |
Total Shareholders' Equity | 3,602,721 | 3,454,154 | 2,999,220 |
TOTAL LIABILITIES + EQUITY | 6,032,435 | 4,405,141 | 4,380,200 |
Question1:
Prepare the Statement of Cash Flows for the Period ending December 31, 2023 for Moon Walk Inc. Moon Walk had transactions as follows:
Sold a piece of equipment during the with an original costs of $120,000. The equipment had accumulated depreciation of $100,000 and was sold for $40,000 cash.
Purchased a piece of equipment for $130,000 cash.
Retired bonds for $500,000 cash.
Issued 200,000 shares of $1 par value common stock for $300,000 cash.
Paid a cash dividend of $50,000
Account | Amount |
---|---|
Net Income | |
Non Cash Expenses | |
Depreciation | |
Amortization | |
Loss/(Gain) on Disposal of Assets | |
Changes in Current Assets and Liabilities | |
Accounts Receivable | |
Inventory | |
Prepaid Expenses | |
Accounts Payable | |
Interest Payable | |
Income Taxes Payable | |
Cash provided by(used in) Operations | |
Proceeds from the Sale of Assets | |
Purchase of Assets | |
Cash provided by [used in] Investing Activities | |
Retirement of Bonds | |
Proceeds from the Issuance of stock | |
Dividend Payment | |
Cash provided by (used in) Financing Activities | |
Net Increase (Decrease) in Cash | |
Beginning Cash Balance | |
Ending Cash Balance |
Question 2:
In 2024, Moon Walk had the following additional transactions:
Sold equipment for $25,000 cash
Purchased a vehicle for $32,000 cash
Issued Bonds Payable in exchange for $1,500,000 cash
Paid a cash dividend of $100,000
Answer the following questions related to preparing Moon Walk's Statement of Cash Flows for December 31, 2024.
What is Net Income?
What is Cash Flow Provided by Operations?
What is Cash Flow Used in Investing Activities?
What is Cash Flow Provided by Financing Activities?
What was the Net Increase in Cash?
Did the change in Accounts Receivable Increase or Decrease cash? enter single word Increase or Decrease
Did the change in Income Taxes Payable Increase or Decrease cash? enter single word Increase or Decrease
What were total Non Cash expenses?
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