Saturn Company Income Statement for ycar cnded Dec. 31, 2018 Sales Revenue Cost of Goods Sold $238,000 153,000 Gross Profit Operating Expenses: Depreciation Expense Insurance Expense Salaries Expense Other Operating Expenses Total Operating Expenses Operating Income Other Revenue and (Expenses): 85,000 $14,400 12,000 42,600 11,100 80,100 4,900 Gain on Sale of Land Interest Expense Total Other Revenue and Expenses 4,800 (3.500) Income Before Income Tax Income Tax Expense Net Income 1,300 6,200 1,860 $ 4,340 Additional Information: 1. Saturn Company sold land with an original cost of $10.000, for $14,800 cash. 2. A new parcel of land was purchased for $20,000, in exchange for a note payable. 3. Plant assets were purchased for $40,0000 cash. 4. Saturn declared and paid a $440 cash dividend to sharcholders. 5. Saturn issued common stock in exchange for S45,000 cash. Prepare a cash flow statement for Saturn Company using the indirect method for the year ended 31 December 2018

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
Saturn Company Income Statement for year cnded Dec. 31,2018
Sales Revenue
Cost of Goods Sold
$238,000
153,000
Gross Profit
Operating Expenses:
Depreciation Expense
Insurance Expense
Salaries Expense
Other Operating Expenses
Total Operating Expenses
Operating Income
Other Revenue and (Expenses):
Gain on Sale of Land
Interest Expense
Total Other Revenue and Expenses
Income Before Income Tax
Income Tax Expense
Net Income
85,000
$14,400
12,000
42,600
11,100
80,100
4,900
4,800
(3,500)
1,300
6,200
1,860
S 4,340
Additional Information:
1. Saturn Company sold land with an original cost of $10.000, for $14,800 cash.
2. A new parcel of land was purchased for $20,000. in exchange for a note payable.
3. Plant assets were purehased for $40.000 cash.
4. Saturn declared and paid a $440 cash dividend to shareholders.
5. Saturn issued common stock in exchange for S45.000 cash.
Prepare a cash flow statement for Saturm Company using the indireet method for the year ended
31 December 2018
Transcribed Image Text:Saturn Company Income Statement for year cnded Dec. 31,2018 Sales Revenue Cost of Goods Sold $238,000 153,000 Gross Profit Operating Expenses: Depreciation Expense Insurance Expense Salaries Expense Other Operating Expenses Total Operating Expenses Operating Income Other Revenue and (Expenses): Gain on Sale of Land Interest Expense Total Other Revenue and Expenses Income Before Income Tax Income Tax Expense Net Income 85,000 $14,400 12,000 42,600 11,100 80,100 4,900 4,800 (3,500) 1,300 6,200 1,860 S 4,340 Additional Information: 1. Saturn Company sold land with an original cost of $10.000, for $14,800 cash. 2. A new parcel of land was purchased for $20,000. in exchange for a note payable. 3. Plant assets were purehased for $40.000 cash. 4. Saturn declared and paid a $440 cash dividend to shareholders. 5. Saturn issued common stock in exchange for S45.000 cash. Prepare a cash flow statement for Saturm Company using the indireet method for the year ended 31 December 2018
[Question 1]
Saturn Company
Comparative Balance Sheet
2018
2017
Assets
Cash
Accounts Recelvable
Prepaid Insurance
Inventory
Land
Plant Assets
$ 47,500
21,500
2,500
48,000
20.000
230,000
(85,500)
$284.000
S 24,300
26,000
1,800
45,500
10,000
190,000
(71,100)
$226,500
Accumulated Depreciation
Total Assets
Llabilities and Equity
Liabilities:
Accounts Payable
Salaries Payable
Notes Payable
$ 17,200
1,900
85,000
$ 19,000
1,500
75,000
95,500
Total Liabiltes
104.100
Equity
Common Stock
Retained Earnings
Total Equity
Total Liabilities and Equity
115.000
64.900
70,000
61,000
179.900
00000
$284.000
$226,500
Transcribed Image Text:[Question 1] Saturn Company Comparative Balance Sheet 2018 2017 Assets Cash Accounts Recelvable Prepaid Insurance Inventory Land Plant Assets $ 47,500 21,500 2,500 48,000 20.000 230,000 (85,500) $284.000 S 24,300 26,000 1,800 45,500 10,000 190,000 (71,100) $226,500 Accumulated Depreciation Total Assets Llabilities and Equity Liabilities: Accounts Payable Salaries Payable Notes Payable $ 17,200 1,900 85,000 $ 19,000 1,500 75,000 95,500 Total Liabiltes 104.100 Equity Common Stock Retained Earnings Total Equity Total Liabilities and Equity 115.000 64.900 70,000 61,000 179.900 00000 $284.000 $226,500
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education