Sarasota Company's income statement for the year ended December 31, 2025, contained the following condensedinformation.Service revenue$848,000Operating expenses (excluding depreciation) $622,000Depreciation expense59,000Loss on sale of equipment25,000706,000Income before income taxesIncome tax expenseNet income142,00040,000$102,000Sarasota's balance sheet contained the following comparative data at December 31.20252024Accounts receivable$38,000$53,000Accounts payable41,00031,000Income taxes payable3,8008,500(Accounts payable pertains to operating expenses.)Prepare the operating activities section of the statement of cash flows using the direct method.SARASOTA COMPANYPartial Statement of Cash Flows$$

Step 1: To make a direct method statement of cash flows, first thing we need to do is to compute the…

Answered: Sarasota Company's income statement for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2024 2023 $5,250,000 $4,350,000 2,170,000 3,030,000 970,000 845,000 530,000 472,000 167,000 157,000 234,000 Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes On July 1, 2024, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2024, for $116,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 234,000 116,000 1/1/2024-9/30/2024 $ 570,000 (375,000) (67,000) (37,000) $ 91,000 2023 $ 670,000 (422,000) (57,000) (37,000) $ 154,000 In addition to the…
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2024 2023 $ 4,500,000 2,880,000 $ 3,600,000 2,020,000 820,000 695,000 380,000 322,000 152,000 142,000 204,000 204,000 56,000 On July 1, 2024, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2024, for $56,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2024-9/30/2024 Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes $ 420,000 (300,000) (52,000) (22,000) $ 46,000 2023 $520,000 (332,000) (42,000) (22,000) $ 124,000 In addition to the account…
Wildhorse Co. Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation $624,100 Depreciation expense 55,400 Loss on disposal of plant assets 25.200 Income before income taxes Income tax expense Net income 2021 $59,800 28,900 6,400 $970,400 Wildhorse's balance sheets contained the following comparative data at December 31. 2022 Accounts receivable $75,200 Accounts payable 40,400 Income taxes payable 13,000 704,700 265,700 39,100 $226,600 Adjustments to reconcile net income to Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with either a sign e.g.-15.000 or in parenthesis e.g. (15,000).) Wildhorse Co. Partial Statement of Cash Flows
Sarasota Corp.’s income statement contained the condensed information below. Sarasota Corp.Income StatementFor the Year Ended December 31, 2022 Service revenue $2,231,000 Operating expenses, excluding depreciation $1,412,200 Depreciation expense 126,500 Loss on disposal of plant assets 36,800 1,575,500 Income before income taxes 655,500 Income tax expense 128,800 Net income $526,700 Sarasota Corp.’s balance sheets contained the following comparative data at December 31. 2022 2021 Accounts receivable $161,000 $138,000 Accounts payable 94,300 73,600 Income taxes payable 29,900 16,100 Accounts payable pertain to operating expenses.Prepare the operating activities section of the statement of cash flows using the direct method.
Oriole Company's income statement contained the following condensed information ORIOLE COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation $624.500 Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income Accounts receivable Accounts payable Income taxes payable 2022 $74,400 40.300 Oriole's balance sheets contained the comparative data at December 31, shown below. 12.900 2021 54,600 $61000 27.000 6.400 24.100 $972,000 703,200 268,800 40,100 $228.700 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g.-15.000 or in parenthesis e.g. (15.000))
Lily Company's income statement contained the following condensed information. LILY COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income Accounts receivable Accounts payable Income taxes payable 2022 2021 $75,500 $61,000 28,300 Lily's balance sheets contained the comparative data at December 31, shown below. 41.000 For Income Taxes 12,200 For Operating Expenses Cash Flows from Operating Activities Cash Receipts from Customers Less V cash payments: $624,200 6,700 Net Cash Provided by Operating Activities 55,500 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).) 25,000 $969,000 $ 704,700 264,300 39,700 $224,600 LILY…
Lily Company's income statement contained the following condensed Information. LILY COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation $624,200 Depreciation expense 55,500 Loss on disposal of plant assets Income before income taxes Income tax expense Net income 2021 $75,500 $61,000 2022 Accounts receivable Accounts payable Income taxes payable 12,200 Lily's balance sheets contained the comparative data at December 31, shown below. 41.000 For Income Taxes Cash Flows from Operating Activities Cash Receipts from Customers V Less cash payments: For Operating Expenses 28,300 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a sign e.g.-15,000 or in parenthesis eg. (15,000)) 25,000 6,700 $969,000 Net Cash Provided by Operating Activities 704,700 264,300 39,700 $224,600 LILY…
Lily Company's income statement contained the following condensed information. LILY COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income Accounts receivable Accounts payable Income taxes payable 2022 $75,500 41,000 12,200 2021 cash payments: Lily's balance sheets contained the comparative data at December 31, shown below. $61,000 28,300 6,700 $624,200 55,500 25,000 $ $969,000 704,700 264,300 39,700 $224,600 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).) LILY COMPANY Partial Statement of Cash Flows $
The current sections of Martinez Corp.’s balance sheets at December 31, 2021 and 2022, are presented here. Martinez Corp.’s net income for 2022 was $241,300. Depreciation expense was $39,900. 2022 2021 Current assets Cash $58,900 $ 84,550 Accounts receivable 80,750 65,550 Inventory 74,100 58,900 Prepaid expenses 16,150 18,050 Total current assets $229,900 $227,050 Current liabilities Accrued expenses payable $ 5,700 $ 15,200 Accounts payable 83,600 68,400 Total current liabilities $89,300 $ 83,600
Below are extracts from the financial statements of Charlton Ltd: Statement of profit or loss for the year ended 31 December 2020 Revenue 214,550 Cost of sales (182,000) Gross profit 32,550 Investment income 4,760 Loss on disposal (40) (6,300) (3,500) Distribution costs Administrative expenses Profit from operations 27,470 Finance costs (2,800) Profit before tax 24,670 (2,100) 22,570 Income tax expense Profit for the period Statements of financial position 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 Current assets Inventories 7,000 13,650 Trade and other receivables 13,300 8,400 Cash and cash equivalents 2,870 1,120 23,170 23,170 Total assets 56,590 46,620 Equity and liabilities Capital and reserves Share capital 7,000 6,300 Share premium Retained…
the income statement of x ltd for the year ended was as follows: net sales 4032000, cost of sales 3168000, depreciation 96000, salaries and wages 384000, opex 128000, provision for taxation 140800, net operating profit 11520. compute net profit before working capital changes
Culver Corp's income statement for the year ended December 31, 2023, had the following condensed information: Service revenue Operating expenses (excluding depreciation) Depreciation expense Unrealized loss on FV-NI investments Loss on disposal of equipment Income before income tax Income tax expense Net income FV-NI investments Accounts receivable Accounts payable Income tax payable (a) 2023 (b1) $22,000 $26,300 35,500 44,900 7,700 Your answer is correct. There were no purchases or sales of trading (FV-NI) investments during 2023. Culver's statement of financial position included the following comparative data at December 31: Cash Paid To Suppliers Cash Flows from Operating Activities Cash Received from Customers Cash Paid For Income Taxes eTextbook and Media 2022 V 54,700 Cash debt coverage ratio 31,600 8,800 $489,000 Net Cash Provided by Operating Activities V 64,000 Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS