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Presented here are the financial statements of Bonita Company. Assets 1. Cash Sales revenue Cost of goods sold Gross profit Selling expenses 2. Administrative expenses Income from operations 3. Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 4. Interest expense Income before income taxes Income tax expense 5. Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Net income BONITA COMPANY Income Statement For the Year Ended December 31, 2022 Additional data: BONITA COMPANY Comparative Balance Sheets December 31 $18,525 6,175 2022 $36,400 32,700 30,700 59,300 (29,700) $129,400 $28,000 27,400 18,200 48,800 $241,900 175,600 $129,400 66,300 24,700 41,600 2,600 7,000 39,000 7,800 $31,200 2021 $20,800 19,500 20,900 77,300 (23,300) $115,200 $16,600 8,300 32,100 13,700 44,500 $115,200 Depreciation expense was $16,600. Dividends declared and paid were $26,900. During the year, equipment was sold for $7,800 cash. This equipment originally cost $18,000 and had accumulated depreciation of $10,200 at the time of sale. Bonds were redeemed at their carrying value. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. 3. 4. All operating expenses except for depreciation were paid in cash. All depreciation expense is in the selling expense category. All sales and inventory purchases are on account. Prepare a statement of cash flows for Bonita Company using the direct method. (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis eg. (15,000)) (b). cash payments: BONITA COMPANY Statement of Cash Flows Compute free cash flow. (Enter negative amount using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Free cash flow $

Presented here are the financial statements of Bonita Company. Assets 1. Cash Sales revenue Cost of goods sold Gross profit Selling expenses 2. Administrative expenses Income from operations 3. Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 4. Interest expense Income before income taxes Income tax expense 5. Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Net income BONITA COMPANY Income Statement For the Year Ended December 31, 2022 Additional data: BONITA COMPANY Comparative Balance Sheets December 31 $18,525 6,175 2022 $36,400 32,700 30,700 59,300 (29,700) $129,400 $28,000 27,400 18,200 48,800 $241,900 175,600 $129,400 66,300 24,700 41,600 2,600 7,000 39,000 7,800 $31,200 2021 $20,800 19,500 20,900 77,300 (23,300) $115,200 $16,600 8,300 32,100 13,700 44,500 $115,200 Depreciation expense was $16,600. Dividends declared and paid were $26,900. During the year, equipment was sold for $7,800 cash. This equipment originally cost $18,000 and had accumulated depreciation of $10,200 at the time of sale. Bonds were redeemed at their carrying value. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. 3. 4. All operating expenses except for depreciation were paid in cash. All depreciation expense is in the selling expense category. All sales and inventory purchases are on account. Prepare a statement of cash flows for Bonita Company using the direct method. (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis eg. (15,000)) (b). cash payments: BONITA COMPANY Statement of Cash Flows Compute free cash flow. (Enter negative amount using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Free cash flow $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Presented here are the financial statements of Bonita Company. Assets 1. Cash Sales revenue Cost of goods sold Gross profit Selling expenses 2. Administrative expenses Income from operations 3. Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 4. Interest expense Income before income taxes Income tax expense 5. Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Net income BONITA COMPANY Income Statement For the Year Ended December 31, 2022 Additional data: BONITA COMPANY Comparative Balance Sheets December 31 $18,525 6,175 2022 $36,400 32,700 30,700 59,300 (29,700) $129,400 $28,000 27,400 18,200 48,800 $241,900 175,600 $129,400 66,300 24,700 41,600 2,600 7,000 39,000 7,800 $31,200 2021 $20,800 19,500 20,900 77,300 (23,300) $115,200 $16,600 8,300 32,100 13,700 44,500 $115,200 Depreciation expense was $16,600. Dividends declared and paid were $26,900. During the year, equipment was sold for $7,800 cash. This equipment originally cost $18,000 and had accumulated depreciation of $10,200 at the time of sale. Bonds were redeemed at their carrying value. Common stock was issued at par for cash.
Transcribed Image Text:Presented here are the financial statements of Bonita Company. Assets 1. Cash Sales revenue Cost of goods sold Gross profit Selling expenses 2. Administrative expenses Income from operations 3. Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 4. Interest expense Income before income taxes Income tax expense 5. Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Net income BONITA COMPANY Income Statement For the Year Ended December 31, 2022 Additional data: BONITA COMPANY Comparative Balance Sheets December 31 $18,525 6,175 2022 $36,400 32,700 30,700 59,300 (29,700) $129,400 $28,000 27,400 18,200 48,800 $241,900 175,600 $129,400 66,300 24,700 41,600 2,600 7,000 39,000 7,800 $31,200 2021 $20,800 19,500 20,900 77,300 (23,300) $115,200 $16,600 8,300 32,100 13,700 44,500 $115,200 Depreciation expense was $16,600. Dividends declared and paid were $26,900. During the year, equipment was sold for $7,800 cash. This equipment originally cost $18,000 and had accumulated depreciation of $10,200 at the time of sale. Bonds were redeemed at their carrying value. Common stock was issued at par for cash.
Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. 3. 4. All operating expenses except for depreciation were paid in cash. All depreciation expense is in the selling expense category. All sales and inventory purchases are on account. Prepare a statement of cash flows for Bonita Company using the direct method. (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis eg. (15,000)) (b). cash payments: BONITA COMPANY Statement of Cash Flows Compute free cash flow. (Enter negative amount using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Free cash flow $
Transcribed Image Text:Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. 3. 4. All operating expenses except for depreciation were paid in cash. All depreciation expense is in the selling expense category. All sales and inventory purchases are on account. Prepare a statement of cash flows for Bonita Company using the direct method. (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis eg. (15,000)) (b). cash payments: BONITA COMPANY Statement of Cash Flows Compute free cash flow. (Enter negative amount using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Free cash flow $
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