Question
VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales $2,636,000 Expenses: Cost of goods sold $1,600,000 Operating expenses 788,000 Depreciation
VIDEO PHONES, INCORPORATED | ||
Income Statement | ||
For the Year Ended December 31, 2024 | ||
Net sales | $2,636,000 | |
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Expenses: | ||
Cost of goods sold | $1,600,000 | |
Operating expenses | 788,000 | |
Depreciation expense | 20,000 | |
Loss on sale of land | 7,300 | |
Interest expense | 11,500 | |
Income tax expense | 41,000 | |
Total expenses | 2,467,800 | |
Net income | $ 168,200 |
VIDEO PHONES, INCORPORATED | ||
Balance Sheets | ||
December 31 | ||
2024 | 2023 | |
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Assets | ||
Current assets: | ||
Cash | $159,180 | $85,940 |
Accounts receivable | 73,300 | 53,000 |
Inventory | 105,000 | 128,000 |
Prepaid rent | 9,120 | 4,560 |
Long-term assets: | ||
Investments | 98,000 | 0 |
Land | 203,000 | 226,000 |
Equipment | 256,000 | 203,000 |
Accumulated depreciation | (60,600) | (40,600) |
Total assets | $843,000 | $659,900 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Accounts payable | $ 59,700 | $ 74,000 |
Interest payable | 5,300 | 8,600 |
Income tax payable | 14,300 | 13,300 |
Long-term liabilities: | ||
Notes payable | 271,000 | 218,000 |
Stockholders' equity: | ||
Common stock | 230,000 | 230,000 |
Retained earnings | 262,700 | 116,000 |
Total liabilities and stockholders equity | $843,000 | $659,900 |
Additional Information for 2024:
Purchased investment in bonds for $98,000.
Sold land for $15,700. The land originally was purchased for $23,000, resulting in a $7,300 loss being recorded at the time of the sale.
Purchased $53,000 in equipment by issuing a $53,000 long-term note payable to the seller. No cash was exchanged in the transaction.
Declared and paid a cash dividend of $21,500.
Required:
Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)
Cash Flows from Operating Activities |
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Adjustments to reconcile net income to net cash flows from operating activities. |
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Not cash from operating activities |
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Cash Flows from Investing Activities |
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Not Cash Flows from investing activities |
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Cash Flows from Financial Activities |
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Not Cash flows from financial activities |
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Cash at the Beginning of the Period |
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Cash at the End of the Period |
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Note: Noncash Activities |
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