Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: Sales revenue 2,100,000 85,000 Gain on sale of Equipment Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses 2,185,000 900,000 150,000 350,000 1,400,000 785,000 210,000 575,000 Income before income taxes Income tax expense Net Income Notes Acquisition of Equipment during 2021 540,000 Sale proceeds from sale of Equipment 255,000 Receipt for issuance of notes payable 27,000 Payment for note payable 150,000 Dividend paid 295,000 Book value of equipment sold 170,000
Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: Sales revenue 2,100,000 85,000 Gain on sale of Equipment Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses 2,185,000 900,000 150,000 350,000 1,400,000 785,000 210,000 575,000 Income before income taxes Income tax expense Net Income Notes Acquisition of Equipment during 2021 540,000 Sale proceeds from sale of Equipment 255,000 Receipt for issuance of notes payable 27,000 Payment for note payable 150,000 Dividend paid 295,000 Book value of equipment sold 170,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 98.3C
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The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been shared at a meeting of the company’s board of directors. The members of the board of directors were desirous of knowing the reason or reasons why the cash balance different from the net income. The company uses the indirect method to prepare the statement of
Using the attached Comparative Balance sheet and Income statement:
- Reconstruct the company’s comparative balance sheet for 2020/2021, compute and show the missing figures to include the appropriate sign as a positive or negative figure.
- Prepare a complete statement of cash flows for 2021 using the indirect method.
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