Sales revenue INCOME STATEMENT For the Year Ended December 31, 2022 Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income befor Income taxes Net income The following additional data were provided: 1. $598000 193000 $8400000 Under the direct method, the cash received from customers is 7152000 1248000 791000 457000 74000 383000 95750 Dividends for the year 2022 were $191000. 2. During the year, equipment was sold for $240000. This equipment cost $350000 originally and had a book value of $291000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. $287250

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sales revenue
INCOME STATEMENT
For the Year Ended December 31, 2022
Cost of sales
Gross profit
Selling expenses
Administrative expenses
Income from operations
Interest expense
Income before taxes
Income taxes
Net income
The following additional data were provided:
1.
$598000
193000
$8400000
Under the direct method, the cash received from customers is
7152000
1248000
791000
457000
74000
383000
95750
Dividends for the year 2022 were $191000.
2. During the year, equipment was sold for $240000. This equipment cost $350000 originally and had a book value of
$291000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
3. All depreciation expense is in the selling expense category.
$287250
Transcribed Image Text:Sales revenue INCOME STATEMENT For the Year Ended December 31, 2022 Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income The following additional data were provided: 1. $598000 193000 $8400000 Under the direct method, the cash received from customers is 7152000 1248000 791000 457000 74000 383000 95750 Dividends for the year 2022 were $191000. 2. During the year, equipment was sold for $240000. This equipment cost $350000 originally and had a book value of $291000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. $287250
Vaughn Manufacturing has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise
is anxious to have prepared is a statement of cash flows. Financial statements of Vaughn Manufacturing for 2022 and 2021 are
provided below.
Cash
Accounts receivable
Inventory
Property, plant and equipment
Less accumulated depreciation
Accounts payable
Income taxes payable
Bonds payable
Common stock
Retained earnings
BALANCE SHEETS
$609000
(318000)
12/31/22
$407000
361000
383000
291000
$1442000
$ 175000
353000
360000
221750
332250
$1442000
$962000
(306000)
12/31/21
$191000
218000
478000
656000
$1543000
$98000
394000
600000
215000
236000
$1543000
Transcribed Image Text:Vaughn Manufacturing has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Vaughn Manufacturing for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings BALANCE SHEETS $609000 (318000) 12/31/22 $407000 361000 383000 291000 $1442000 $ 175000 353000 360000 221750 332250 $1442000 $962000 (306000) 12/31/21 $191000 218000 478000 656000 $1543000 $98000 394000 600000 215000 236000 $1543000
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