During 2022, Mastermind Corporation had: Revenue of $766,000 Cost of Goods Sold of $225,000 Operating expenses of $58,000 Interest expense of $3,500 Depreciation Expense of $13,000 During the year Mastermind Corporation paid: 40% of net income in dividends 21% in corporate taxes A. Prepare a multi-step income statement include the dividend and additions to Retained Earnings below the income statement. B. Calculate Mastermind’s Operating Cash Flow beneath the Income Statement.
During 2022, Mastermind Corporation had: Revenue of $766,000 Cost of Goods Sold of $225,000 Operating expenses of $58,000 Interest expense of $3,500 Depreciation Expense of $13,000 During the year Mastermind Corporation paid: 40% of net income in dividends 21% in corporate taxes A. Prepare a multi-step income statement include the dividend and additions to Retained Earnings below the income statement. B. Calculate Mastermind’s Operating Cash Flow beneath the Income Statement.
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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Question
- During 2022, Mastermind Corporation had:
- Revenue of $766,000
- Cost of Goods Sold of $225,000
- Operating expenses of $58,000
- Interest expense of $3,500
Depreciation Expense of $13,000
During the year Mastermind Corporation paid:
- 40% of net income in dividends
- 21% in corporate taxes
A. Prepare a multi-step income statement include the dividend and additions to
B. Calculate Mastermind’s Operating Cash Flow beneath the Income Statement.
Expert Solution
Step 1
Net Income is the total of earnings acquired for a specific period less the cost of goods sold and other operating and non-operating expenses and operating cash flow determines the cash generated through normal business operation.
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