Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Income taxes Profit Assets Cash LAG Network Inc. Comparative Balance Sheet Information Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets $ 25,200 232,800 Liabilities and Equity Accounts payable Income taxes payable Common shares Retained earnings Total liabilities and equity December 31 42,400 284,710 $ 928,600 556,200 $ 372,400 2023 2022 $ 81,190 $ 54,400 37,600 247,800 154,400 (71,800) 258,000 $ 114,400 18,600 $ 95,800 $ 490,900 138,400 (46,600) $ 431,600 $ 31,200 $ 43,800 11,600 363,000 85,100 10,200 337,500 40,100 $ 490,900 $ 431,600 Additional information regarding LAG Network Inc.'s activities during 2023: a. Equipment is purchased for $16,000 cash. b. 10.200 common shares are issued for cash at $2.50 per share. c. Declared and paid $50,800 of cash dividends during the year. Other information regarding LAG Network Inc.: a. All sales are credit sales. b. All credits to accounts receivable are receipts from customers. c. All purchases of merchandise are on credit. d. All debits to accounts payable result from payments for merchandise
Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Income taxes Profit Assets Cash LAG Network Inc. Comparative Balance Sheet Information Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets $ 25,200 232,800 Liabilities and Equity Accounts payable Income taxes payable Common shares Retained earnings Total liabilities and equity December 31 42,400 284,710 $ 928,600 556,200 $ 372,400 2023 2022 $ 81,190 $ 54,400 37,600 247,800 154,400 (71,800) 258,000 $ 114,400 18,600 $ 95,800 $ 490,900 138,400 (46,600) $ 431,600 $ 31,200 $ 43,800 11,600 363,000 85,100 10,200 337,500 40,100 $ 490,900 $ 431,600 Additional information regarding LAG Network Inc.'s activities during 2023: a. Equipment is purchased for $16,000 cash. b. 10.200 common shares are issued for cash at $2.50 per share. c. Declared and paid $50,800 of cash dividends during the year. Other information regarding LAG Network Inc.: a. All sales are credit sales. b. All credits to accounts receivable are receipts from customers. c. All purchases of merchandise are on credit. d. All debits to accounts payable result from payments for merchandise
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:LAG Network Inc.
Income Statement
For Year Ended December 31, 2023
Sales
Cost of goods sold
Gross profit
Operating expenses:
Depreciation expense
Other expenses
Total operating expenses
Profit from operations
Income taxes
Profit
Assets
Cash
Accounts receivable
Merchandise inventory
Equipment
Accumulated depreciation
Total assets
Liabilities and Equity
Accounts payable
Income taxes payable
Common shares
Retained earnings
Total liabilities and equity
LAG Network Inc.
Comparative Balance Sheet Information
$
$
Cash flows from operating activities:
25,200
232,800
$
Other information regarding LAG Network Inc.:
Cash flows from investing activities:
Cash flows from financing activities:
$ 490,900
31, 200
11,600
363,000
85,100
$ 490,900
December 31
$928,600
556,200
$ 372,400
2023
2022
81,190 $ 54,400
42,400
37,600
284,710
247,800
154,400
138,400
(71,800)
(46,600)
$ 431,600
Additional information regarding LAG Network Inc.'s activities during 2023:
a. Equipment is purchased for $16,000 cash.
b. 10.200 common shares are issued for cash at $2.50 per share.
c. Declared and paid $50,800 of cash dividends during the year.
258,000
$ 114,400
18,600
$95,808
LAG NETWORK INC.
Statement of Cash Flows
For Year Ended December 31, 2023
a. All sales are credit sales.
b. All credits to accounts receivable are receipts from customers.
c. All purchases of merchandise are on credit.
d. All debits to accounts payable result from payments for merchandise.
e. Other operating expenses are cash expenses.
1. The only decrease in income taxes payable is for payment of taxes.
Required:
Prepare a statement of cash flows for 2023 using the direct method to report cash inflows and outflows from operating activities. (List
any deduction In cash and cash outflows as negative amounts.)
$ 43,800
10,200
337,500
40,100
$ 431,600
$
$
0
0
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