Diamond Corp. has provided the following information for the year ended December 31, 2018. Diamond Corp Comparative Balance Sheet December 31, 2018 and 2017 Increase 2018 2017 (Decrease) $33,000 29,000 56,000 126,000 $244,000 $13,000 36,000 29,000 92.000 $170,000 $20,000 (7,000) 27,000 34.000 $74.000 Cash Accounts Receivable Merchandise Inventory Plant Assets, net Total Assets Accounts Payable $9,000 7,000 70,000 86.000 $13,000 3,000 79,000 95.000 $(4,000) 4,000 (9,000) (9.000) Accrued Liabilities Long-term Notes Payable Total Liabilities Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 52,000 37,000 (6,000 83,000 $74.000 55,000 115,000 (12.000) 158,000 $244.000 3,000 78,000 (6,000) 75,000 $170,000 Diamond Corp Income Statement Year ended December 31, 2018 $291,300 1,000 6.000 Sales Revenue Interest Revenue Gain on Sale of Plant Assets $298,300 Total Revenues and Gains Cost of Goods Sold Salaries and Wages Expense Depreciation Expense-Plant Assets Other Operating Expense Interest Expense Income Tax Expense Total Expenses 145,000 49,000 16,000 25,000 3,500 7.800 246,300 $52.000 Net Income Diamond Corp Income Statement Year ended December 31, 2018 $291,300 1,000 6.000 Sales Revenue Interest Revenue Gain on Sale of Plant Assets $298,300 Total Revenues and Gains Cost of Goods Sold 145,000 49,000 16,000 25,000 3,500 7,800 Salaries and Wages Expense Depreciation Expense-Plant Assets Other Operating Expense Interest Expense Income Tax Expense Total Expenses Net Income 246,300 $52.000 Additional information provided by the company includes the following: Equipment costing $60,000 was purchased for cash. Equipment with a net book value of $10,000 was sold for a gain of $6,000. During 2018, the company repaid $43,000 of long-term notes payable. During 2018, the company borrowed $34,000 on a new long-term note payable. Prepare the 2018 statement of cash flows, using the indirect method.
Diamond Corp. has provided the following information for the year ended December 31, 2018. Diamond Corp Comparative Balance Sheet December 31, 2018 and 2017 Increase 2018 2017 (Decrease) $33,000 29,000 56,000 126,000 $244,000 $13,000 36,000 29,000 92.000 $170,000 $20,000 (7,000) 27,000 34.000 $74.000 Cash Accounts Receivable Merchandise Inventory Plant Assets, net Total Assets Accounts Payable $9,000 7,000 70,000 86.000 $13,000 3,000 79,000 95.000 $(4,000) 4,000 (9,000) (9.000) Accrued Liabilities Long-term Notes Payable Total Liabilities Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 52,000 37,000 (6,000 83,000 $74.000 55,000 115,000 (12.000) 158,000 $244.000 3,000 78,000 (6,000) 75,000 $170,000 Diamond Corp Income Statement Year ended December 31, 2018 $291,300 1,000 6.000 Sales Revenue Interest Revenue Gain on Sale of Plant Assets $298,300 Total Revenues and Gains Cost of Goods Sold Salaries and Wages Expense Depreciation Expense-Plant Assets Other Operating Expense Interest Expense Income Tax Expense Total Expenses 145,000 49,000 16,000 25,000 3,500 7.800 246,300 $52.000 Net Income Diamond Corp Income Statement Year ended December 31, 2018 $291,300 1,000 6.000 Sales Revenue Interest Revenue Gain on Sale of Plant Assets $298,300 Total Revenues and Gains Cost of Goods Sold 145,000 49,000 16,000 25,000 3,500 7,800 Salaries and Wages Expense Depreciation Expense-Plant Assets Other Operating Expense Interest Expense Income Tax Expense Total Expenses Net Income 246,300 $52.000 Additional information provided by the company includes the following: Equipment costing $60,000 was purchased for cash. Equipment with a net book value of $10,000 was sold for a gain of $6,000. During 2018, the company repaid $43,000 of long-term notes payable. During 2018, the company borrowed $34,000 on a new long-term note payable. Prepare the 2018 statement of cash flows, using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Diamond Corp. has provided the following information for the year ended December 31, 2018.
Diamond Corp
Comparative Balance Sheet
December 31, 2018 and 2017
Increase
2018
2017
(Decrease)
$33,000
29,000
56,000
126,000
$244,000
$13,000
36,000
29,000
92.000
$170,000
$20,000
(7,000)
27,000
34.000
$74.000
Cash
Accounts Receivable
Merchandise Inventory
Plant Assets, net
Total Assets
Accounts Payable
$9,000
7,000
70,000
86.000
$13,000
3,000
79,000
95.000
$(4,000)
4,000
(9,000)
(9.000)
Accrued Liabilities
Long-term Notes Payable
Total Liabilities
Common Stock
Retained Earnings
Treasury Stock
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
52,000
37,000
(6,000
83,000
$74.000
55,000
115,000
(12.000)
158,000
$244.000
3,000
78,000
(6,000)
75,000
$170,000
Diamond Corp
Income Statement
Year ended December 31, 2018
$291,300
1,000
6.000
Sales Revenue
Interest Revenue
Gain on Sale of Plant Assets
$298,300
Total Revenues and Gains
Cost of Goods Sold
Salaries and Wages Expense
Depreciation Expense-Plant Assets
Other Operating Expense
Interest Expense
Income Tax Expense
Total Expenses
145,000
49,000
16,000
25,000
3,500
7.800
246,300
$52.000
Net Income
Transcribed Image Text:Diamond Corp
Income Statement
Year ended December 31, 2018
$291,300
1,000
6.000
Sales Revenue
Interest Revenue
Gain on Sale of Plant Assets
$298,300
Total Revenues and Gains
Cost of Goods Sold
145,000
49,000
16,000
25,000
3,500
7,800
Salaries and Wages Expense
Depreciation Expense-Plant Assets
Other Operating Expense
Interest Expense
Income Tax Expense
Total Expenses
Net Income
246,300
$52.000
Additional information provided by the company includes the following:
Equipment costing $60,000 was purchased for cash.
Equipment with a net book value of $10,000 was sold for a gain of $6,000.
During 2018, the company repaid $43,000 of long-term notes payable.
During 2018, the company borrowed $34,000 on a new long-term note payable.
Prepare the 2018 statement of cash flows, using the indirect method.
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