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Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $74,100 6,900 15,900 303,000 390,000 219,100 $1,009,000 $ 90,000 11,800 14,900 234,000 390,000 132,000 $872,700 Additional Information for 2024: 1. Purchased investment in bonds for $114,000. 2. Sold land for $30,100. The land originally was purchased for $39.000, resulting in a $8,900 loss being recorded at the time of sale. 3. Purchased $69,000 in equipment by issuing a $69,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $29,500. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)

Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $74,100 6,900 15,900 303,000 390,000 219,100 $1,009,000 $ 90,000 11,800 14,900 234,000 390,000 132,000 $872,700 Additional Information for 2024: 1. Purchased investment in bonds for $114,000. 2. Sold land for $30,100. The land originally was purchased for $39.000, resulting in a $8,900 loss being recorded at the time of sale. 3. Purchased $69,000 in equipment by issuing a $69,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $29,500. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation $2,400,000 948,000 36,000 8,900 19,500 57,000 Total assets Liabilities and stockholders' Equity Current liabilities: Accounts Davable. $3,586,000 3,469,400 $116,600 VIDEO PHONES, INCORPORATED Balance Sheets. December 31 2024 $257,740 90,900. 105,000 14,160 114,000 219,000 288,000 (79,800) $1,009,000 $74.100 2023 $219,420 69,000 144,000 7,080 0 258,000 219,000 (43,800) $872,700 $90.000
Transcribed Image Text:The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation $2,400,000 948,000 36,000 8,900 19,500 57,000 Total assets Liabilities and stockholders' Equity Current liabilities: Accounts Davable. $3,586,000 3,469,400 $116,600 VIDEO PHONES, INCORPORATED Balance Sheets. December 31 2024 $257,740 90,900. 105,000 14,160 114,000 219,000 288,000 (79,800) $1,009,000 $74.100 2023 $219,420 69,000 144,000 7,080 0 258,000 219,000 (43,800) $872,700 $90.000
Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 74,100 6,900 15,900 303,000 390,000 219,100 $1,009,000 $90,000 11,800 14,900 234,000 390,000 132,000 $872,700 Additional Information for 2024: 1. Purchased investment in bonds for $114,000. 2. Sold land for $30,100. The land originally was purchased for $39,000, resulting in a $8,900 loss being recorded at the time of the sale. 3. Purchased $69,000 in equipment by issuing a $69,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $29,500. Check r Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note.. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)
Transcribed Image Text:Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 74,100 6,900 15,900 303,000 390,000 219,100 $1,009,000 $90,000 11,800 14,900 234,000 390,000 132,000 $872,700 Additional Information for 2024: 1. Purchased investment in bonds for $114,000. 2. Sold land for $30,100. The land originally was purchased for $39,000, resulting in a $8,900 loss being recorded at the time of the sale. 3. Purchased $69,000 in equipment by issuing a $69,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $29,500. Check r Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note.. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)
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