please dont provide answer in image format thank you Great Lakes Manufacturing Inc. comparative Statement of Financial Position at December 31in (000)'s 20X5 20X4 Cash $ 5,100 $ 4,800 Accounts Receivable $ 9,010 $ 6,100 Inventory $ 10,400 $ 14,000 Prepaid Expenses $ 1,950 $ 1,020 Equipment $ 58,500 $ 59,900 Accumulated Depreciation - equipment $ (33,100 ) $ (32,000 ) Total Assets $ 51,860 $ 53,820 Account Payable $ 7,000 $ 11,400 Interest Payable $ 350 $ 110 Income taxes payable $ 650 $ 500 Dividends Payable $ 2,400 $ 3,200 Long-term Notes Payable $ 17,500 $ 17,000 Common shares $ 22,000 $ 20,000 Retained Earnings $ 1,960 $ 1,610 Total Liabilities & Shareholders' Equity $ 51,860 $ 53,820 Great Lakes Manufacturing Inc. Income Statement Year Ended December 31, 20X5 in (000)'s Sale $ 130,000 Cost of goods sold $ 97,000 Gross Profit $ 33,000 Operating Expenses $ 30,000 Gain on Sale of equipment $ (1,000 ) $ 29,000 Profit from Operations $ 4,000 Other expenses Interest Expense $ 200 Profit before Income Tax $ 3,800 Income Tax Expense $ 1,550 Profit $ 2,250 Additional Information: Operating expenses include depreciation expense of $3,500,000 Accounts Payable related to the purchase of inventory Equipment that cost $3,900,000 was sold at a gain of $1,000,000 New equipment was purchased during the year for $2,500,000 Dividends declared and paid in 20X5 totaled $1,900,000 Common shares were sold for $2,000,000 cash Interest payable in 20X5 was $240,000 greater than interest payable in 20X4 What is the total cash payments for interest when the direct cash flow method is used? Multiple Choice None of the other alternatives are correct $440 $160 $40 $200
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
please dont provide answer in image format thank you
Great Lakes Manufacturing Inc. comparative
20X5 20X4
Cash $ 5,100 $ 4,800
Inventory $ 10,400 $ 14,000
Prepaid Expenses $ 1,950 $ 1,020
Equipment $ 58,500 $ 59,900
Total Assets $ 51,860 $ 53,820
Account Payable $ 7,000 $ 11,400
Interest Payable $ 350 $ 110
Income taxes payable $ 650 $ 500
Dividends Payable $ 2,400 $ 3,200
Long-term Notes Payable $ 17,500 $ 17,000
Common shares $ 22,000 $ 20,000
Total Liabilities & Shareholders' Equity $ 51,860 $ 53,820
Great Lakes Manufacturing Inc.
Income Statement
Year Ended December 31, 20X5 in (000)'s
Sale $ 130,000
Cost of goods sold $ 97,000
Gross Profit $ 33,000
Operating Expenses $ 30,000
Gain on Sale of equipment $ (1,000 ) $ 29,000
Profit from Operations $ 4,000
Other expenses
Interest Expense $ 200
Profit before Income Tax $ 3,800
Income Tax Expense $ 1,550
Profit $ 2,250
Additional Information:
Operating expenses include depreciation expense of $3,500,000
Accounts Payable related to the purchase of inventory
Equipment that cost $3,900,000 was sold at a gain of $1,000,000
New equipment was purchased during the year for $2,500,000
Dividends declared and paid in 20X5 totaled $1,900,000
Common shares were sold for $2,000,000 cash
Interest payable in 20X5 was $240,000 greater than interest payable in 20X4
What is the total cash payments for interest when the direct
Multiple Choice
None of the other alternatives are correct
$440
$160
$40
$200
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
