Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment Accumulated depreciation-equipment Land Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Total liabilities and equity Sales revenue As of December 31 Income Statement For the Year Ended December 31, Year 2 Cost of goods sold Gross margin Operating expenses Salaries expense Depreciation expense Utilities expense Operating income Nonoperating items Interest expense Loss on the sale of equipment Net income Additional Information Year 2 $125,695 60, 152 124,585 0 150,900 (69,815) 85,500 $477,017 $ 42,242 $ 32,888 674 0 0 306,400 94,813 $477,017 $ 584,350 (290, 159) 294, 191 (184,830) (17,795) (11,700) 79, 866 (2,655) (1,420) $ 75,791 Year 1 $ 29,140 69, 650 112,720 29,700 257,700 (135, 320) 55,500 $ 419,090 48,880 26,310 1,348 2,460 62,500 244,500 33,092 $ 419,090 1. Sold equipment costing $106,800 with accumulated depreciation of $83,300 for $22,080 cash. 2. Paid a $14,070 cash dividend to owners.
Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment Accumulated depreciation-equipment Land Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Total liabilities and equity Sales revenue As of December 31 Income Statement For the Year Ended December 31, Year 2 Cost of goods sold Gross margin Operating expenses Salaries expense Depreciation expense Utilities expense Operating income Nonoperating items Interest expense Loss on the sale of equipment Net income Additional Information Year 2 $125,695 60, 152 124,585 0 150,900 (69,815) 85,500 $477,017 $ 42,242 $ 32,888 674 0 0 306,400 94,813 $477,017 $ 584,350 (290, 159) 294, 191 (184,830) (17,795) (11,700) 79, 866 (2,655) (1,420) $ 75,791 Year 1 $ 29,140 69, 650 112,720 29,700 257,700 (135, 320) 55,500 $ 419,090 48,880 26,310 1,348 2,460 62,500 244,500 33,092 $ 419,090 1. Sold equipment costing $106,800 with accumulated depreciation of $83,300 for $22,080 cash. 2. Paid a $14,070 cash dividend to owners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following financial statements were drawn from the records of Benson Shoes:
Assets
Cash
Accounts receivable
Merchandise inventory
Notes receivable
Equipment
Accumulated depreciation-equipment
Land
Total assets
Liabilities
Accounts payable
Salaries payable
Utilities payable
Interest payable
Notes payable (long-term)
Common stock
Retained earnings
Total liabilities and equity
Sales revenue
Cost of goods sold
Gross margin
Balance Sheets
As of December 31
Operating expenses
Salaries expense
Depreciation expense
Utilities expense
Income Statement
For the Year Ended December 31, Year 2
Operating income
Nonoperating items
Interest expense
Loss on the sale of equipment
Net income
Additional Information
Year 2
$125,695
60, 152
124,585
0
150,900
(69,815)
85,500
$477,017
$ 42,242
32,888
674
0
0
306,400
94,813
$477,017
$ 584,350
(290,159)
294, 191
(184,830)
(17,795)
(11,700)
79, 866
(2,655)
(1,420)
$ 75,791
Year 1
$ 29,140
69, 650
112,720
29,700
257,700
(135, 320)
55,500
$ 419,090
$ 48,880
26,310
1,348
2,460
62,500
244,500
33,092
$ 419,090
1. Sold equipment costing $106,800 with accumulated depreciation of $83,300 for $22,080 cash.
2. Paid a $14,070 cash dividend to owners.
Transcribed Image Text:2. Paid a $14,070 cash dividend to owners.
Required:
Analyze the data and prepare a statement of cash flows using the direct method. (Amounts to be deducted and
cash outflows should be indicated by a minus sign.)
BENSON SHOES
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash Flows From Operating Activities:
Cash receipts from customers
Cash Payments for:
Total cash outflows
Cash Flows from Investing Activities:
Cash Flows from Financing Activities:
Ending cash balance
$
O
0
0
0
0
0
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