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Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Metlock Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $6,000 $7,000 Accounts receivable 61,800 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 59,400 Prepaid rent 4,900 4,000 Equipment 153,100 130,500 Accumulated depreciation-equipment (35,000) (24,700) Copyrights 45,900 50,500 Total assets $311,800 $295,300 Accounts payable $46,000 $39,700 Income taxes payable 4,000 5,900 Salaries and wages payable 8,100 4,100 Short-term loans payable 8,100 10,100 Long-term loans payable 59,900 68,600 Common stock, $10 par 100,000 100,000 Paid-in capital, common stock 30,000 30,000 Retained earnings 55,700 36,900 Total liabilities and stockholders' equity $311,800 $295,300 Metlock Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue Cost of goods sold Gross profit $333,125 173,600 159,525 Operating expenses 118,900 Operating income 40,625 Interest expense $11,500 Gain on sale of equipment 2,000 9,500 Income before tax 31,125 Income tax expense 6,225 Net income $24,900 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2025. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) METLOCK INC. STATEMENT OF CASH FLOWS

Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Metlock Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $6,000 $7,000 Accounts receivable 61,800 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 59,400 Prepaid rent 4,900 4,000 Equipment 153,100 130,500 Accumulated depreciation-equipment (35,000) (24,700) Copyrights 45,900 50,500 Total assets $311,800 $295,300 Accounts payable $46,000 $39,700 Income taxes payable 4,000 5,900 Salaries and wages payable 8,100 4,100 Short-term loans payable 8,100 10,100 Long-term loans payable 59,900 68,600 Common stock, $10 par 100,000 100,000 Paid-in capital, common stock 30,000 30,000 Retained earnings 55,700 36,900 Total liabilities and stockholders' equity $311,800 $295,300 Metlock Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue Cost of goods sold Gross profit $333,125 173,600 159,525 Operating expenses 118,900 Operating income 40,625 Interest expense $11,500 Gain on sale of equipment 2,000 9,500 Income before tax 31,125 Income tax expense 6,225 Net income $24,900 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2025. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) METLOCK INC. STATEMENT OF CASH FLOWS

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 49E
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Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Metlock Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $6,000 $7,000 Accounts receivable 61,800 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 59,400 Prepaid rent 4,900 4,000 Equipment 153,100 130,500 Accumulated depreciation-equipment (35,000) (24,700) Copyrights 45,900 50,500 Total assets $311,800 $295,300 Accounts payable $46,000 $39,700 Income taxes payable 4,000 5,900 Salaries and wages payable 8,100 4,100 Short-term loans payable 8,100 10,100 Long-term loans payable 59,900 68,600 Common stock, $10 par 100,000 100,000 Paid-in capital, common stock 30,000 30,000 Retained earnings 55,700 36,900 Total liabilities and stockholders' equity $311,800 $295,300
Transcribed Image Text:Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Metlock Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $6,000 $7,000 Accounts receivable 61,800 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 59,400 Prepaid rent 4,900 4,000 Equipment 153,100 130,500 Accumulated depreciation-equipment (35,000) (24,700) Copyrights 45,900 50,500 Total assets $311,800 $295,300 Accounts payable $46,000 $39,700 Income taxes payable 4,000 5,900 Salaries and wages payable 8,100 4,100 Short-term loans payable 8,100 10,100 Long-term loans payable 59,900 68,600 Common stock, $10 par 100,000 100,000 Paid-in capital, common stock 30,000 30,000 Retained earnings 55,700 36,900 Total liabilities and stockholders' equity $311,800 $295,300
Metlock Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue Cost of goods sold Gross profit $333,125 173,600 159,525 Operating expenses 118,900 Operating income 40,625 Interest expense $11,500 Gain on sale of equipment 2,000 9,500 Income before tax 31,125 Income tax expense 6,225 Net income $24,900 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2025. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) METLOCK INC. STATEMENT OF CASH FLOWS
Transcribed Image Text:Metlock Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue Cost of goods sold Gross profit $333,125 173,600 159,525 Operating expenses 118,900 Operating income 40,625 Interest expense $11,500 Gain on sale of equipment 2,000 9,500 Income before tax 31,125 Income tax expense 6,225 Net income $24,900 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2025. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) METLOCK INC. STATEMENT OF CASH FLOWS
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