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XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed
XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:
Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment $ 33,300 34,000 40,000 113,500 29,000 $191,800 $ 35,000 1,500 33,500 85,600 36,200 $191,800 $ 28,250 27,500 37,500 95,000 24,500 $163,750 $ 26,500 1,650 39,000 72,100 24, 500 $163,750 Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $115,000 67,500 35,800 $ 11,700 Additional Data: a. Bought equipment for cash, $18,500 b. Paid $5,500 on the long-term note payable. C. Issued new shares of stock for $13,500 cash d. No dividends were declared or paid. e. Other expenses included depreciation, $4,500; salaries and wages, $19,500; taxes, $5,500; utilities, $6,300 f Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities 3 Cash Flows from Investing Activities: Cash Flows from Financing Activities
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