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Replace XXX  by 956

Replace XXX  by 956

FINANCIAL ACCOUNTING
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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Replace XXX  by 956

The Statement of financial position account balances as at December 31, 2019 and 2018 and Income statement of Ravioli Inc. are presented below: Statement of Financial Position Account Balances December 31 2019 2018 Cash $58,XXX $18,000 Accounts receivable, net 40,000 32,XXX Inventory 42,500 38,200 Building and equipment 67,000 88,000 Accumulated depreciation (31,000) (35,000) Accounts payable $21,000 $18,500 Salaries payable 3,800 7XXX L-T Debt Payable 25,000 7XXX 5,000 Common shares 119,700 110,700 Retained earnings Replace X0XX with the last three digits of your student number. Ravioli Inc. Income Statement For the Year Ended December 31, 2019 $125,000 Sales 48,000 Cost of goods sold 77,000 Gross profit 7,000 Gain on Sale of equipment 8,000 Depreciation expenses 41,000 Salaries expenses 16,000 Other Operating Expenses 19,000 Operating income 6.000 Income taxes $13.000 Profit Additional information: 1.) Equipment was purchased during the year for $10,000 cash. 2.) Another piece of equipment was sold during the year. It had accumulated depreciation of $ 12,000. The gain on sale of this equipment is recorded in Income statement. Hint: The first step is to calculate the cost of the equipment sold, using information in 1.) and Building and Equipment account balances. 3.) Dividends were declared and paid during the year. Prepare the statement of cash flows for 2019 using the indirect method. You MUST list all items in the same order as they appear on the Statement of Cash Flows in proper format. You do not have to insert the table to present your work.
Transcribed Image Text:The Statement of financial position account balances as at December 31, 2019 and 2018 and Income statement of Ravioli Inc. are presented below: Statement of Financial Position Account Balances December 31 2019 2018 Cash $58,XXX $18,000 Accounts receivable, net 40,000 32,XXX Inventory 42,500 38,200 Building and equipment 67,000 88,000 Accumulated depreciation (31,000) (35,000) Accounts payable $21,000 $18,500 Salaries payable 3,800 7XXX L-T Debt Payable 25,000 7XXX 5,000 Common shares 119,700 110,700 Retained earnings Replace X0XX with the last three digits of your student number. Ravioli Inc. Income Statement For the Year Ended December 31, 2019 $125,000 Sales 48,000 Cost of goods sold 77,000 Gross profit 7,000 Gain on Sale of equipment 8,000 Depreciation expenses 41,000 Salaries expenses 16,000 Other Operating Expenses 19,000 Operating income 6.000 Income taxes $13.000 Profit Additional information: 1.) Equipment was purchased during the year for $10,000 cash. 2.) Another piece of equipment was sold during the year. It had accumulated depreciation of $ 12,000. The gain on sale of this equipment is recorded in Income statement. Hint: The first step is to calculate the cost of the equipment sold, using information in 1.) and Building and Equipment account balances. 3.) Dividends were declared and paid during the year. Prepare the statement of cash flows for 2019 using the indirect method. You MUST list all items in the same order as they appear on the Statement of Cash Flows in proper format. You do not have to insert the table to present your work.
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