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Business
Accounting
Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Total assets Accounts payable Income tax payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity $58,374 58,100 42,800 6,200 168,000 (34,000) $299,474 $50,950 4,000 60,000 126,550 57,974 $299,474 $53,800 51,800 72,500 4,000 129,000 (25,900) $285,200 $35,000 6,200 70,000 126,550 47,450 $285,200

Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Total assets Accounts payable Income tax payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity $58,374 58,100 42,800 6,200 168,000 (34,000) $299,474 $50,950 4,000 60,000 126,550 57,974 $299,474 $53,800 51,800 72,500 4,000 129,000 (25,900) $285,200 $35,000 6,200 70,000 126,550 47,450 $285,200

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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prepare a statement of cash flows using the indirect method.

Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Gain on disposal of equipment Income before income tax Income tax expense Net income PRONGHORN Inc. Income Statement Year Ended December 31, 2023 Additional information: 1. 2. 3. $11,700 (3,000) $386,000 212,000 174,000 121,600 52,400 8,700 43,700 20,976 $22,724 Dividends on common shares in the amount of $12,200 were declared and paid during 2023. Depreciation expense of $22,450 is included in operating expenses. Equipment with a cost of $20,500 that was 70% depreciated was sold during 2023.
Transcribed Image Text:Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Gain on disposal of equipment Income before income tax Income tax expense Net income PRONGHORN Inc. Income Statement Year Ended December 31, 2023 Additional information: 1. 2. 3. $11,700 (3,000) $386,000 212,000 174,000 121,600 52,400 8,700 43,700 20,976 $22,724 Dividends on common shares in the amount of $12,200 were declared and paid during 2023. Depreciation expense of $22,450 is included in operating expenses. Equipment with a cost of $20,500 that was 70% depreciated was sold during 2023.
Pronghorn Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2023: Cash PRONGHORN Inc. Comparative Statement of Financial Position December 31 Accounts receivable Total assets 2023 Accounts payable Income tax payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity $58,374 58,100 Inventory Prepaid rent Equipment 168,000 Accumulated depreciation-equipment (34,000) $299,474 42,800 6,200 $50,950 4,000 60,000 126,550 57,974 $299,474 2022 $53,800 51,800 72,500 4,000 129,000 (25,900) $285,200 $35,000 6,200 70,000 126,550 47,450 $285,200
Transcribed Image Text:Pronghorn Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2023: Cash PRONGHORN Inc. Comparative Statement of Financial Position December 31 Accounts receivable Total assets 2023 Accounts payable Income tax payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity $58,374 58,100 Inventory Prepaid rent Equipment 168,000 Accumulated depreciation-equipment (34,000) $299,474 42,800 6,200 $50,950 4,000 60,000 126,550 57,974 $299,474 2022 $53,800 51,800 72,500 4,000 129,000 (25,900) $285,200 $35,000 6,200 70,000 126,550 47,450 $285,200
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