Dec. 31, 20Y6 Dec. 31, 20Y5 Assets $ 643,400 $ 679,400 547,400 Cash ...... Accounts receivable (net) 566,800 Inventories 1,011,000 982,800 Investments 240,000 Land.... 520,000 880,000| Equipment.... 680,000 Accumulated depreciation.. (244,400) (200,400) Total assets. $3,376,800 $2,929,200 Liabilities and Stockholders'Equity Accounts payable ..... Accrued expenses payable. Dividends payable..... Common stock, $2 par.. $ 771,800 $ 748,400 70,800 63,400 8,800 6,400 56,000 32,000 Paid-in capital: Excess of issue price over par-common stock.... Retained earnings....... Total liabilities and stockholders'equity. 408,000 192,000 1,879,600 2,068,800 $3,376,800 $2,929,200 The income statement for the year ended December 31, 20Y6, is as follows: Sales ...... $5,980,000 Cost of merchandise sold 2,452,000 Gross profit...... Operating expenses: Depreciation expense Other operating expenses Total operating expenses . $3,528,000 $ 44,000 3,100,000 3,144,000 $ 384,000 Operating income.. Other expense: Loss on sale of investments .. (64,000) $ 320,000 Income before income tax Income tax expense .. 102,800 $ 217,200 Net income..... Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $176,000 cash. d. The common stock was issued for cash. e. There was a $28,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:

Dec. 31, 20Y6
Dec. 31, 20Y5
Assets
$ 643,400
$ 679,400
547,400
Cash
......
Accounts receivable (net)
566,800
Inventories
1,011,000
982,800
Investments
240,000
Land....
520,000
880,000|
Equipment....
680,000
Accumulated depreciation..
(244,400)
(200,400)
Total assets.
$3,376,800
$2,929,200
Liabilities and Stockholders'Equity
Accounts payable .....
Accrued expenses payable.
Dividends payable.....
Common stock, $2 par..
$ 771,800
$ 748,400
70,800
63,400
8,800
6,400
56,000
32,000
Paid-in capital: Excess of issue price over par-common stock....
Retained earnings.......
Total liabilities and stockholders'equity.
408,000
192,000
1,879,600
2,068,800
$3,376,800
$2,929,200
The income statement for the year ended December 31, 20Y6, is as follows:
Sales ......
$5,980,000
Cost of merchandise sold
2,452,000
Gross profit......
Operating expenses:
Depreciation expense
Other operating expenses
Total operating expenses .
$3,528,000
$ 44,000
3,100,000
3,144,000

$ 384,000
Operating income..
Other expense:
Loss on sale of investments ..
(64,000)
$ 320,000
Income before income tax
Income tax expense ..
102,800
$ 217,200
Net income.....
Additional data obtained from an examination of the accounts in the ledger for 20Y6
are as follows:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $176,000 cash.
d. The common stock was issued for cash.
e. There was a $28,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from
operating activities.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions