Johnson Company has the following data from the balance sheet: Cash Accounts receivable, net Inventory Prepaid rent Accounts payable. Salaries payable 12/31/2023 $30,000 100,000 100,000. 20,000 $50,000 40,000 12/31/2022 $400,000 101,000 30,000 20,000 9000 7.000 $80,000 160,000 60,000 10,000 $40,000 40,000 The company also reports the following income statement for the year ending December 31, 2023: Sales $1,100,000 Expenses: Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Loss on sale of equipment Total Expenses Income Before Taxes Income tax expense Net income 567,000 533,000 22,000 $511,000 Using the direct method, prepare the statement of cash flows for the year ending December 31, 2023: A) $613,000 B) $558,000 C) $681,000: D) $1,043,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please do not give solution in image format thanku 

Johnson Company has the following data from the balance sheet:
Cash
Accounts receivable, net
Inventory
Prepaid rent
Accounts payable.
Salaries payable
12/31/2023
$30,000
100,000
100,000.
20,000
$50,000
40,000
12/31/2022
$400,000
101,000
30,000
20,000
9000
7.000
$80,000
160,000
60,000
10,000
$40,000
40,000
The company also reports the following income statement for the year ending December 31, 2023:
Sales
$1,100,000
Expenses:
Cost of goods sold
Salaries expense
Rent expense
Depreciation expense
Interest expense
Loss on sale of equipment
Total Expenses
Income Before Taxes
Income tax expense
Net income
567,000
533,000
22,000
$511,000
Using the direct method, prepare the statement of cash flows for the year ending December 31,
2023:
A) $613,000
B) $558,000
C) $681,000:
D) $1,043,000
Transcribed Image Text:Johnson Company has the following data from the balance sheet: Cash Accounts receivable, net Inventory Prepaid rent Accounts payable. Salaries payable 12/31/2023 $30,000 100,000 100,000. 20,000 $50,000 40,000 12/31/2022 $400,000 101,000 30,000 20,000 9000 7.000 $80,000 160,000 60,000 10,000 $40,000 40,000 The company also reports the following income statement for the year ending December 31, 2023: Sales $1,100,000 Expenses: Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Loss on sale of equipment Total Expenses Income Before Taxes Income tax expense Net income 567,000 533,000 22,000 $511,000 Using the direct method, prepare the statement of cash flows for the year ending December 31, 2023: A) $613,000 B) $558,000 C) $681,000: D) $1,043,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education