MOSS COMPANY Income Statement For Year Ended December 31, 2019 Sales.. Cost of goods sold. Gross proft... Operating expenses Depreciation expense... $ 36,000 121,500 Other expenses Income before taxes.. Income taxes expense... Net Income. $515,000 331,600 183,400 157.500 25,900 7,700 $18.200 MOSS COMPANY Selected Balance Sheet Information December 31, 2019 and 2018 2019 Current assets Cash. Accounts receivable.. Inventory...... Current abilities Accounts payable.. Income taxes payable. $84,650 25,000 60,000 30,400 2.050 2018 $26,800 32,000 54,100 25,700 2.200 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2019? 2. Assume that no additional notes payable are issued in 2019. What cash amount is paid to reduce the notes payable balance in 2019?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QS 16-17
MOSS COMPANY
Income Statement
For Year Ended December 31, 2019
Sales..
Cost of goods sold..
Gross profit....
Operating expenses
Depreciation expense.... $ 36,000
121,500
Other expenses..
Income before taxes....
Income taxes expense.....
Net Income...
$515,000
331,600
183,400
157,500
25,900
7,700
$ 18,200
MOSS COMPANY
Selected Balance Sheet Information
December 31, 2019 and 2018
2019
Current assets
Cash
Accounts receivable.
Inventory..
Current liabilities
Accounts payable.....
Income taxes payable
$84,650
25,000
60,000
30,400
2,050
2018
$26,800
32,000
54,100
25,700
2.200
1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2019?
2. Assume that no additional notes payable are issued in 2019. What cash amount is paid to reduce the notes payable balance in
2019?
Transcribed Image Text:QS 16-17 MOSS COMPANY Income Statement For Year Ended December 31, 2019 Sales.. Cost of goods sold.. Gross profit.... Operating expenses Depreciation expense.... $ 36,000 121,500 Other expenses.. Income before taxes.... Income taxes expense..... Net Income... $515,000 331,600 183,400 157,500 25,900 7,700 $ 18,200 MOSS COMPANY Selected Balance Sheet Information December 31, 2019 and 2018 2019 Current assets Cash Accounts receivable. Inventory.. Current liabilities Accounts payable..... Income taxes payable $84,650 25,000 60,000 30,400 2,050 2018 $26,800 32,000 54,100 25,700 2.200 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2019? 2. Assume that no additional notes payable are issued in 2019. What cash amount is paid to reduce the notes payable balance in 2019?
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