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Use the information below to prepare a Statement of Cash Flow for Bob's Bargain Shop. You need to prepare the statement using both the direct
Use the information below to prepare a Statement of Cash Flow for Bob's Bargain Shop. You need to prepare the statement using both the direct method and the indirect method for the operating section. Bob's Bargain Shop Income Statement For the Year Ended December 31, Year 2 Year 1 Bob's Bargain Shop Balance Sheets As of December 31 Year 2 Assets Cash 94,300 Accounts Receivable 36,000 Inventory 72,000 Note Receivable Equipment 98,000 Acc. Dep - Equipment (47,800) Land 46,000 Total Assets 298,500 Sales Revenue Cost of Goods Sold Gross Margin 300,000 (144,000) 156,000 14,100 40,000 64,000 16,000 170,000 (94,000) 30,000 240,100 Operating Expenses Salary Expense Depreciation Expense Utilities Expense Total Operating Expenses (88,000) (9,800) (6,400) (104,200) Operating Income 51,800 24,000 15,000 800 26,400 10,000 1,400 1,000 24,000 62,800 Other Income/Expense Interest Expense Loss on Sale of Equipment Total Other Income/Expense Liabilities Accounts Payable Salaries Payable Utilities Payable Interest Payable Note Payable - Long Term Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Equity (2,400) (800) (3,200) 39,800 Net Income 48,600 150,000 108,700 258,700 298,500 110,000 67,300 177,300 240,100 Additional Information 1) The only transaction involving equipment was a piece that was sold for a loss. 2) Land was purchased with cash
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