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BOOST PLUS, INC. Income Statement Year Ended September 30, 2018 Net Sales Revenue $ 231,000 Cost of Goods Sold 94,000 Gross Profit 137,000 Operating Expenses: Salaries Expense $ 54,000 Depreciation Expense-Plant Assets 27,000 Total Operating Expenses 81,000 Net Income Before Income Taxes 56,000 Income Tax Expense 3,000 Net Income $ 53,000 September 30 2018 2017 Cash $ 39,000 $ 13,000 Accounts Receivable 46,000 61,000 Merchandise Inventory 94,000 88,000 Land 82,000 102,000 Plant Assets 214,000 90,000 Accumulated Depreciation (61,000) (34,000) Accounts Payable 32,000 15,000 Accrued Liabilities 12,000 20,000 Notes Payable (long-term) 16,000 15,000 Common Stock, no par 40,000 4,000 Retained Earnings 314,000 266,000

BOOST PLUS, INC. Income Statement Year Ended September 30, 2018 Net Sales Revenue $ 231,000 Cost of Goods Sold 94,000 Gross Profit 137,000 Operating Expenses: Salaries Expense $ 54,000 Depreciation Expense-Plant Assets 27,000 Total Operating Expenses 81,000 Net Income Before Income Taxes 56,000 Income Tax Expense 3,000 Net Income $ 53,000 September 30 2018 2017 Cash $ 39,000 $ 13,000 Accounts Receivable 46,000 61,000 Merchandise Inventory 94,000 88,000 Land 82,000 102,000 Plant Assets 214,000 90,000 Accumulated Depreciation (61,000) (34,000) Accounts Payable 32,000 15,000 Accrued Liabilities 12,000 20,000 Notes Payable (long-term) 16,000 15,000 Common Stock, no par 40,000 4,000 Retained Earnings 314,000 266,000

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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Preparing the statement of cash flows-indirect methodThe income statement of Boost Plus, Inc. follows:

Additional data follow:

a. Acquisition of plant assets is $124,000. Of this amount, $108,000 is paid in cash and $16,000 by signing a note payable.

b. Cash receipt from sale of land totals $20,000. There was no gain or loss.

c. Cash receipts from issuance of common stock total $36,000.

d. Payment of notes payable is $15,000.

e. Payment of dividends is $5,000.

f. From the balance sheet:

Prepare Boost Plus’s statement of cash flows for the year ended September 30, 2018, using the indirect method Include a separate section for non-cash investing and financing activities.

BOOST PLUS, INC. Income Statement Year Ended September 30, 2018 Net Sales Revenue $ 231,000 Cost of Goods Sold 94,000 Gross Profit 137,000 Operating Expenses: Salaries Expense $ 54,000 Depreciation Expense-Plant Assets 27,000 Total Operating Expenses 81,000 Net Income Before Income Taxes 56,000 Income Tax Expense 3,000 Net Income $ 53,000
Transcribed Image Text:BOOST PLUS, INC. Income Statement Year Ended September 30, 2018 Net Sales Revenue $ 231,000 Cost of Goods Sold 94,000 Gross Profit 137,000 Operating Expenses: Salaries Expense $ 54,000 Depreciation Expense-Plant Assets 27,000 Total Operating Expenses 81,000 Net Income Before Income Taxes 56,000 Income Tax Expense 3,000 Net Income $ 53,000
September 30 2018 2017 Cash $ 39,000 $ 13,000 Accounts Receivable 46,000 61,000 Merchandise Inventory 94,000 88,000 Land 82,000 102,000 Plant Assets 214,000 90,000 Accumulated Depreciation (61,000) (34,000) Accounts Payable 32,000 15,000 Accrued Liabilities 12,000 20,000 Notes Payable (long-term) 16,000 15,000 Common Stock, no par 40,000 4,000 Retained Earnings 314,000 266,000
Transcribed Image Text:September 30 2018 2017 Cash $ 39,000 $ 13,000 Accounts Receivable 46,000 61,000 Merchandise Inventory 94,000 88,000 Land 82,000 102,000 Plant Assets 214,000 90,000 Accumulated Depreciation (61,000) (34,000) Accounts Payable 32,000 15,000 Accrued Liabilities 12,000 20,000 Notes Payable (long-term) 16,000 15,000 Common Stock, no par 40,000 4,000 Retained Earnings 314,000 266,000
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