Following are the financial statements and other supplementary information for Summer Corporation for its year-ended December 31, 2022: Sales Cost of goods sold Gross Margin Depreciation Expense Wage Expense Other operating expenses Interest Expense Loss on Sale of Equipment Income Before Tax Income Tax Expense Net Income Current Assets Cash Accounts receivable Inventory Prepaid Expenses Non-Current Assets Equipment Accumulated Depreciation Total Assets Current Liabilities Accounts Payable Income Taxes Payable Wages Payable barnet Davable $1,055,000 (545,000) 510,000 (37,000) (103,000) (55,000) (25,000) (Z.800) 282,200 (112,880) $169,320 2022 $102,560 98,000 85,900 6,700 275,000 (54,000) $514,160 $32,500 5,600 8,800 6,500 Long-Term Liabilities and Shareholders' Equity LT Notes Payable Common Shares Retained Earnings Total Liabilities and Shareholders' Equity 6,500 2021 $145,000 -42,440 110,000 -12,000 43,000 42,900 1,200 5,500 Change 125,000 150,000 (25,000) 29,000 $399,200 114,960 $56,700 -24,200 5,600 -7,700 6,500 0 16,500 0 0 6,500 100,000 85,000 15,000 270,000 225,000 45,000 90,760 16,000 74,760 $514,160 $399,200 114,960 Additional Information: 1. During the year, Summer declared an issued a stock dividend for $5,000. 2. Equipment with a cost of $55,000, NBV $47,000 was sold during the year. It was the only sale of equipment during the year. 3. Equipment was purchased during the year for cash. 4. During the year, Summer declared and paid a cash dividend. 5. Prepaids are related to other operating expenses, accounts payable are related to the purchase of inventory. Required: Prepare, in proper form, a Cash Flow Statement for the company for the year-ended December 31, 2022, using the Direct Methods and complete the Operating section ONLY for the Indirect method
Following are the financial statements and other supplementary information for Summer Corporation for its year-ended December 31, 2022: Sales Cost of goods sold Gross Margin Depreciation Expense Wage Expense Other operating expenses Interest Expense Loss on Sale of Equipment Income Before Tax Income Tax Expense Net Income Current Assets Cash Accounts receivable Inventory Prepaid Expenses Non-Current Assets Equipment Accumulated Depreciation Total Assets Current Liabilities Accounts Payable Income Taxes Payable Wages Payable barnet Davable $1,055,000 (545,000) 510,000 (37,000) (103,000) (55,000) (25,000) (Z.800) 282,200 (112,880) $169,320 2022 $102,560 98,000 85,900 6,700 275,000 (54,000) $514,160 $32,500 5,600 8,800 6,500 Long-Term Liabilities and Shareholders' Equity LT Notes Payable Common Shares Retained Earnings Total Liabilities and Shareholders' Equity 6,500 2021 $145,000 -42,440 110,000 -12,000 43,000 42,900 1,200 5,500 Change 125,000 150,000 (25,000) 29,000 $399,200 114,960 $56,700 -24,200 5,600 -7,700 6,500 0 16,500 0 0 6,500 100,000 85,000 15,000 270,000 225,000 45,000 90,760 16,000 74,760 $514,160 $399,200 114,960 Additional Information: 1. During the year, Summer declared an issued a stock dividend for $5,000. 2. Equipment with a cost of $55,000, NBV $47,000 was sold during the year. It was the only sale of equipment during the year. 3. Equipment was purchased during the year for cash. 4. During the year, Summer declared and paid a cash dividend. 5. Prepaids are related to other operating expenses, accounts payable are related to the purchase of inventory. Required: Prepare, in proper form, a Cash Flow Statement for the company for the year-ended December 31, 2022, using the Direct Methods and complete the Operating section ONLY for the Indirect method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Following are the financial statements and other supplementary information for Summer
Corporation for its year-ended December 31, 2022:
Sales
Cost of goods sold
Gross Margin
Depreciation Expense
Wage Expense
Other operating expenses
Interest Expense
Loss on Sale of Equipment
Income Before Tax
Income Tax Expense
Net Income
Current Assets
Cash
Accounts receivable
Inventory
Prepaid Expenses
Non-Current Assets
Equipment
Accumulated Depreciation
Total Assets
Current Liabilities
Accounts Payable
Income Taxes Payable
Wages Payable
barnet Davable
$1,055,000
(545,000)
510,000
(37,000)
(103,000)
(55,000)
(25,000)
(Z.800)
282,200
(112,880)
$169,320
2022
$102,560
98,000
85,900
6,700
275,000
(54,000)
$514,160
$32,500
5,600
8,800
6,500
Long-Term Liabilities and Shareholders' Equity
LT Notes Payable
Common Shares
Retained Earnings
Total Liabilities and Shareholders' Equity
6,500
2021
$145,000 -42,440
110,000 -12,000
43,000 42,900
1,200
5,500
Change
125,000
150,000
(25,000) 29,000
$399,200 114,960
$56,700 -24,200
5,600
-7,700
6,500
0
16,500
0
0
6,500
100,000
85,000
15,000
270,000
225,000
45,000
90,760
16,000 74,760
$514,160 $399,200 114,960
Additional Information:
1. During the year, Summer declared an issued a stock dividend for $5,000.
2. Equipment with a cost of $55,000, NBV $47,000 was sold during the year. It was the
only sale of equipment during the year.
3. Equipment was purchased during the year for cash.
4. During the year, Summer declared and paid a cash dividend.
5. Prepaids are related to other operating expenses, accounts payable are related to the
purchase of inventory.
Required:
Prepare, in proper form, a Cash Flow Statement for the company for the year-ended December
31, 2022, using the Direct Methods and complete the Operating section ONLY for
the Indirect method
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education