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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.

Moon Walk Inc. Comparative Statement of Income for the 12 months ending December 31, 2024
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

Moon Walk Inc Comparative Balance Sheet as of December 31, 2024
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

Moon Walk Inc Statement of Cash Flows for the period ending December 31, 2023
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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