Western Resources Western ResourcesBalance Sheet Income StatementAt December 31, 20X5 For the Period Ended December 31, 20X5Assets20X5 20X4 Current assets Sales Revenue$34,000,000Cash$900,000$255,000 Cost of Goods Sold (29,500,000)Accounts receivable 100,000 2,500,000 Gross Profit$4,500,000Allowance for Doubftul Accounts (10,000) (250,000) Inventory 7,200,000 1,950,000 Operating Expenses: Prepaid Rent 710,000 860,000 Rent Expense$(800,000)Long-term assets Utilities Expense (150,000)Land$3,975,000 4,200,000 Depreciation Expense (1,250,000)Buildings and Equipment 8,250,000 8,750,000 Bad Debts Expense (160,000)Accumulated Depreciation (4,250,000) (3,550,000) Total Operating Expenses$(2,360,000)Total assets$16,875,000$14,715,000 Liabilities and Stockholders' Equity Other: Current liabilities Interest Expense$(640,000)Accounts payable$2,850,000$1,100,000 Loss on Sale of Building (100,000)Interest payable 490,000 400,000 Gain on Sale of Land 400,000Income taxes payable 80,000 310,000 Dividends payable 12,000 55,000 Income Before Income Taxes$1,800,000Long-term liabilities Income Tax Expense (720,000)Long-term debt$2,600,000 4,000,000 Net Income$1,080,000Stockholders' Equity Common stock$6,675,000 5,600,000 Retained earnings 4,168,000 3,250,000 Total liabilities and shareholders' equity$16,875,000$14,715,000 Additional information: The following journal entry was recorded during the year:Building 700,000Common Stock 700,000 Required: Using the balance sheet and income statement above, complete the operating section worksheet, a complete statement of cash flows using the indirect method, and a complete statement of cash flows using the direct method. RequirementComplete the investing and financing sections of the statement of cash flows below.Western ResourcesStatement of Cash Flows (Investing and Financing Sections)For the Period Ended Dec. 31, 20X5Cash Flows from Investing ActivitiesNet Cash Inflow(Outflow) Investing Activities$Cash Flows from Financing ActivitiesNet Cash Inflow/(Outflow) Financing Activities$%24

Cash Flow statements are the statement of changes in cash in an organization. Any non-cash item will…

Answered: Required: Using the balance sheet and…

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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Western Resources		Western Resources
Balance Sheet		Income Statement
At December 31, 20X5		For the Period Ended December 31, 20X5
Assets	20X5		20X4
Current assets						Sales Revenue	$	34,000,000
Cash	$	900,000	$	255,000		Cost of Goods Sold		(29,500,000)
Accounts receivable		100,000		2,500,000		Gross Profit	$	4,500,000
Allowance for Doubftul Accounts		(10,000)		(250,000)
Inventory		7,200,000		1,950,000		Operating Expenses:
Prepaid Rent		710,000		860,000		Rent Expense	$	(800,000)
Long-term assets						Utilities Expense		(150,000)
Land	$	3,975,000		4,200,000		Depreciation Expense		(1,250,000)
Buildings and Equipment		8,250,000		8,750,000		Bad Debts Expense		(160,000)
Accumulated Depreciation		(4,250,000)		(3,550,000)		Total Operating Expenses	$	(2,360,000)
Total assets	$	16,875,000	$	14,715,000
Liabilities and Stockholders' Equity					Other:
Current liabilities						Interest Expense	$	(640,000)
Accounts payable	$	2,850,000	$	1,100,000		Loss on Sale of Building		(100,000)
Interest payable		490,000		400,000		Gain on Sale of Land		400,000
Income taxes payable		80,000		310,000
Dividends payable		12,000		55,000		Income Before Income Taxes	$	1,800,000
Long-term liabilities						Income Tax Expense		(720,000)
Long-term debt	$	2,600,000		4,000,000		Net Income	$	1,080,000
Stockholders' Equity
Common stock	$	6,675,000		5,600,000
Retained earnings		4,168,000		3,250,000
Total liabilities and shareholders' equity	$	16,875,000	$	14,715,000

Additional information: The following journal entry was recorded during the year:

Building 700,000

Common Stock 700,000

Required: Using the balance sheet and income statement above, complete the operating section worksheet, a complete statement of cash flows using the indirect method, and a complete statement of cash flows using the direct method.

Requirement
Complete the investing and financing sections of the statement of cash flows below.
Western Resources
Statement of Cash Flows (Investing and Financing Sections)
For the Period Ended Dec. 31, 20X5
Cash Flows from Investing Activities
Net Cash Inflow(Outflow) Investing Activities
$
Cash Flows from Financing Activities
Net Cash Inflow/(Outflow) Financing Activities
$
%24

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