Norman Travel Products, Inc. Income Statement Year Ended December 31, 2018 Revenues: Service revenue Dividend revenue Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Income tax expense Net income DNECK ANSwer. Print $ Done 280,000 8,900 $288,900 95,000 61,000 39,000 4,600 2,700 8,000 210,300 $ 78,600 a. Acquisition of plant assets was $118,000. Of this amount, $75,000 was paid in cash and $43,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $27,000. c. Proceeds from the issuance of common stock totaled $60,000. d. Payment of a long-term note payable was $13,000. e. Payment of dividends was $18,000. f. From the balance sheets: Current assets: Cash Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Print $ December 31, 2018 $ 125,000 45,000 50,000 9,700 Done 31,000 21,000 2017 $ 46,200 58,000 65,000 8.900 $ 20,000 79,000
Norman Travel Products, Inc. Income Statement Year Ended December 31, 2018 Revenues: Service revenue Dividend revenue Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Income tax expense Net income DNECK ANSwer. Print $ Done 280,000 8,900 $288,900 95,000 61,000 39,000 4,600 2,700 8,000 210,300 $ 78,600 a. Acquisition of plant assets was $118,000. Of this amount, $75,000 was paid in cash and $43,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $27,000. c. Proceeds from the issuance of common stock totaled $60,000. d. Payment of a long-term note payable was $13,000. e. Payment of dividends was $18,000. f. From the balance sheets: Current assets: Cash Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Print $ December 31, 2018 $ 125,000 45,000 50,000 9,700 Done 31,000 21,000 2017 $ 46,200 58,000 65,000 8.900 $ 20,000 79,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please don't give image format
Transcribed Image Text:Data Table
Norman Travel Products, Inc.
Income Statement
Year Ended December 31, 2018
Revenues:
Service revenue
Dividend revenue
Expenses:
Cost of goods sold
Salary expense
Depreciation expense
Advertising expense
Interest expense
Income tax expense
Net income
CK UNECK ANSWer.
Print
$
Done
280,000
8,900 $288,900
95,000
61,000
39,000
4,600
2,700
8,000
210,300
$ 78,600
More Info
a. Acquisition of plant assets was $118,000. Of this amount, $75,000 was
paid in cash and $43,000 was financed by signing a note payable.
b. Proceeds from the sale of land totaled $27,000.
c. Proceeds from the issuance of common stock totaled $60,000.
d. Payment of a long-term note payable was $13,000.
e. Payment of dividends was $18,000.
f. From the balance sheets:
Current assets:
Cash
Accounts receivable
Inventory
Prepaid expenses
Current liabilities:
Accounts payable
Accrued liabilities
Print
$
$
December 31,
2018
Done
125,000
45,000
50,000
9,700
31,000
21,000
$
$
2017
46,200
58,000
65,000
8,900
20,000
79,000
Transcribed Image Text:The income statement and additional data of Norman Travel Products, Inc., follow:
(Click the icon to view the income statement.) (Click the loon to view the additional data.)
Requirements
1. Prepare Norman's statement of cash flows for the year ended December 31, 2018, using the Indirect method.
2 Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation.
Requirement 1. Prepare Norman's statement of cash flows for the year ended December 31, 2018, using the indirect method.
Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and
for a net decrease in cash.)
Norman Travel Products, Inc.
Statement of Cash Flows (Indirect Method)
Year Ended December 31, 2018
Cash flows from operating activities:
Adjustments to reconcile net income to
net cash provided by (used for) operating activities:
Choose from any list or enter any number in the input fields and then click Check Answer.
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