One Stop, Inc.Comparative Balance SheetDecember 31, 2018 and 2017 20182017AssetsCurrent Assets: Cash$26,800$14,900Accounts Receivable26,70025,500Merchandise Inventory79,90091,900Long-term Assets: Land35,4008,000Plant Assets117,550109,150Accumulated Depreciation—Plant Assets(19,650)(15,450)Total Assets$266,700$234,000LiabilitiesCurrent Liabilities: Accounts Payable$35,000$30,700Accrued Liabilities28,60030,200Long-term Liabilities: Notes Payable73,000105,000Total Liabilities136,600165,900Stockholders' EquityCommon Stock, no par88,20064,300Retained Earnings41,9003,800Total Stockholders' Equity130,10068,100Total Liabilities and Stockholders' Equity$266,700$234,000 One Stop, Inc. Income Statement Year Ended December 31, 2018Net Sales Revenue$444,000Cost of Goods Sold207,200Gross Profit236,800Operating Expenses:Salaries Expense$75,400 Depreciation Expenseâ€”Plant Assets14,600 Other Operating Expenses10,100 Total Operating Expenses100,100Operating Income136,700Other Income and (Expenses):Interest Revenue8,800 Interest Expense-21,600 Total Other Income and (Expenses)-12,800Net Income Before Income Taxes123,900Income Tax Expense19,800Net Income$104,100 **Cash Flow Statement Template Explanation**This template is designed for educational purposes on understanding cash flow statements. It breaks down cash flows from Operating, Investing, and Financing Activities, as well as Non-cash Investing and Financing Activities.### Cash Flows from Operating Activities:- **Net Income:** This is the starting point for calculating cash flows from operations. - **Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities:** - **Depreciation Expense—Plant Assets:** $14,500 - **Increase in Accounts Receivable:** ($1,000) - Additional lines (3 to 7) for other adjustments affecting operating cash flow.- **Net Cash Provided by (Used for) Operating Activities:** Total of adjustments.### Cash Flows from Investing Activities:- Lines (8 to 11) are for recording cash inflows and outflows from investing activities, such as purchase or sale of long-term assets.- **Net Cash Provided by (Used for) Investing Activities:** Total of investing activity cash flows.### Cash Flows from Financing Activities:- Lines (12 to 15) capture the cash changes from transactions with the firm’s owners and creditors.- **Net Cash Provided by (Used for) Financing Activities:** Total of financing activity cash flows.### Cash Position:- **Net Increase (Decrease) in Cash:** The overall change in cash balance resulting from the operations, investing, and financing activities.- **Cash Balance, December 31, 2017:** Initial cash balance at the start of the period.- **Cash Balance, December 31, 2018:** Final cash balance at the end of the period.### Non-cash Investing and Financing Activities:- Lines (16 to 17) are for detailing transactions that do not involve cash.- **Total Non-cash Investing and Financing Activities:** Sum of all non-cash transactions.This template helps students learn how different business activities affect cash flow and overall financial health. Additionally, One Stop purchased land of $27,400 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $10,400. The plant acquisition was for cash.

Cash flow statement: It is a statement which reports the cash inflows and outflows of a business during the period under operating activities, financing activities and investing activities. The cash flow statement is prepared under both direct and indirect methods.Prepare the statement of cash flows under indirect method:

One Stop, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $26,800 $14,900 Accounts Receivable 26,700 25,500 Merchandise Inventory 79,900 91,900 Long-term Assets: Land 35,400 8,000 Plant Assets 117,550 109,150 Accumulated Depreciation—Plant Assets (19,650) (15,450) Total Assets $266,700 $234,000 Liabilities Current Liabilities: Accounts Payable $35,000 $30,700 Accrued Liabilities 28,600 30,200 Long-term Liabilities: Notes Payable 73,000 105,000 Total Liabilities 136,600 165,900 Stockholders' Equity Common Stock, no par 88,200 64,300 Retained Earnings 41,900 3,800 Total Stockholders' Equity 130,100 68,100 Total Liabilities and Stockholders' Equity $266,700 $234,000 One Stop, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $444,000 Cost of Goods Sold 207,200 Gross Profit 236,800 Operating Expenses: Salaries Expense $75,400 Depreciation Expenseâ€”Plant Assets 14,600 Other Operating Expenses 10,100 Total Operating Expenses 100,100 Operating Income 136,700 Other Income and (Expenses): Interest Revenue 8,800 Interest Expense -21,600 Total Other Income and (Expenses) -12,800 Net Income Before Income Taxes 123,900 Income Tax Expense 19,800 Net Income $104,100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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One Stop, Inc.
Comparative Balance Sheet
December 31, 2018 and 2017
	2018	2017
Assets
Current Assets:
Cash	$26,800	$14,900
Accounts Receivable	26,700	25,500
Merchandise Inventory	79,900	91,900
Long-term Assets:
Land	35,400	8,000
Plant Assets	117,550	109,150
Accumulated Depreciation—Plant Assets	(19,650)	(15,450)
Total Assets	$266,700	$234,000
Liabilities
Current Liabilities:
Accounts Payable	$35,000	$30,700
Accrued Liabilities	28,600	30,200
Long-term Liabilities:
Notes Payable	73,000	105,000
Total Liabilities	136,600	165,900
Stockholders' Equity
Common Stock, no par	88,200	64,300
Retained Earnings	41,900	3,800
Total Stockholders' Equity	130,100	68,100
Total Liabilities and Stockholders' Equity	$266,700	$234,000

One Stop, Inc.
Income Statement
Year Ended December 31, 2018
Net Sales Revenue	$444,000
Cost of Goods Sold	207,200
Gross Profit	236,800
Operating Expenses:
Salaries Expense	$75,400
Depreciation Expenseâ€”Plant Assets	14,600
Other Operating Expenses	10,100
Total Operating Expenses	100,100
Operating Income	136,700
Other Income and (Expenses):
Interest Revenue	8,800
Interest Expense	-21,600
Total Other Income and (Expenses)	-12,800
Net Income Before Income Taxes	123,900
Income Tax Expense	19,800
Net Income	$104,100

**Cash Flow Statement Template Explanation**

This template is designed for educational purposes on understanding cash flow statements. It breaks down cash flows from Operating, Investing, and Financing Activities, as well as Non-cash Investing and Financing Activities.

### Cash Flows from Operating Activities:

- **Net Income:** This is the starting point for calculating cash flows from operations.

- **Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities:**
- **Depreciation Expense—Plant Assets:** $14,500
- **Increase in Accounts Receivable:** ($1,000)
- Additional lines (3 to 7) for other adjustments affecting operating cash flow.

- **Net Cash Provided by (Used for) Operating Activities:** Total of adjustments.

### Cash Flows from Investing Activities:

- Lines (8 to 11) are for recording cash inflows and outflows from investing activities, such as purchase or sale of long-term assets.

- **Net Cash Provided by (Used for) Investing Activities:** Total of investing activity cash flows.

### Cash Flows from Financing Activities:

- Lines (12 to 15) capture the cash changes from transactions with the firm’s owners and creditors.

- **Net Cash Provided by (Used for) Financing Activities:** Total of financing activity cash flows.

### Cash Position:

- **Net Increase (Decrease) in Cash:** The overall change in cash balance resulting from the operations, investing, and financing activities.

- **Cash Balance, December 31, 2017:** Initial cash balance at the start of the period.

- **Cash Balance, December 31, 2018:** Final cash balance at the end of the period.

### Non-cash Investing and Financing Activities:

- Lines (16 to 17) are for detailing transactions that do not involve cash.

- **Total Non-cash Investing and Financing Activities:** Sum of all non-cash transactions.

This template helps students learn how different business activities affect cash flow and overall financial health.

Additionally, One Stop purchased land of $27,400 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $10,400. The plant acquisition was for cash.

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