Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information provided for Eagle Eye, Inc and prepare the statement of cash flows for Eagle Eye for the year of 2013 using the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Use the information provided for Eagle Eye, Inc and prepare the statement of cash flows for Eagle Eye for the year of 2013 using the indirect method. Fill in the blanks on the left side of the statement with a description of the entry. Put the amount of the entry in the blank on the right side of the statement. 2012 $ 47,000 Eagle Eye, Inc Balance Sheets December 31, 2013 and 2012 2013 ASSETS Current assets: Cash 65,000 Accounts receivable 128,000 Prepaid expenses 10,000 32,000 Total Current Assets 235,000 Property, plant and equipment: Equipment 270,000 Accumulated depreciation (118,000 Total assets $ 387,000 9,000 46,000 209,000 $ 262,000 (109,000) 362,000 $ LIABILITIES AND EQUITY $ $ 18,000 5,000 8,000 31,000 11,000 9,000 . 5,000 25,000 $ $ Current liabilities: Accounts payable Salaries payable Income taxes payable Total current liabilities Lont-term liabilities: Notes payable Total liabilities Equity: Common stock Retained earnings Total equity Total liabilities and equity $ 120.000 151.000 $ 130,000 155,000 $ nun 213.000 23.000 236.000 387.000 200,000 7,000 207,000 362,000 $ Eagle Eye, Inc Income Statement For the Year Ended December 31, 2013 1,344,000 (928,000) 416,000 Sales revenue Less: Cost of goods sold Gross margin Less operation expenses: Salaries expenses Depreciation Other operating expenses Income from operations Other income and expenses: Gain on disposal of equipment Interest expense Income before taxes Less: Income taxes expense Net Income (230,000) (24,000) (116,000) 46,000 3,000 (14,000) 35,000 (8,000) 27,000 Additional Information: 1. Equipment with a cost of $24,000 and accumulated depreciation of $15,000 was sold for $12,000 cash. 2. Equipment was purchased for $32,000 cash. 3. Notes payable in the amount of $10,000 were repaid. 14. Common stock was issued for $13,000 cash during 2013 5. Cash dividends of $11,000 were paid during 2013. Eagle Eye. Inc. Statement of Cash Flows For the Year Ended December 31, 2013 Cash Flow from Operating Activities Adjustments for: Cash provided (used) by operatin activities Cash provided (used) by operating activities Cash Flow from Investing Activities Cash provided (used) by investing activities Cash Flow from Financing Activities Cash provided (used) by financing activities Nel change in cash Cash provided (used) by financing activities Net change in cash Cash, 1/1/2013 Cash, 12/31/2013

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Executives And MBAs

Authors: Paul Simko, James Wallace, Joseph Comprix

5th Edition

1618533665, 9781618533661

More Books

Students also viewed these Accounting questions