2. Prepare a complete statement of cash flows for October 2021 using the indirect method based on the informationand guidance provided above.Financial info to be used by surnames with initials (K, Q, M, F)Sign Language Hearing Co LtdComparative Balance SheetOctober 31, 2020, and 202120212020AssetsCash and cash equivalentAccounts ReceivablePrepaid expensesEquipment, net320,000275,000240,000220,000210,00045,00180,000-240,000350,0001,090,000AccemTotal AssetsOS000 145, 00020,000cçoc)945,000LiabilitiesAccounts payableAccrued liabilitiesBond payableStockholders' Equity:Common Stock305,000285,000195,000285,000305,00095,000H0,000195,00090,000)145,00095,000Retained earningsTreasury stockTotal liabilities and stockholders' equity350,000(140,000)1,090,00055,000255,000(50,000)945,000243.00014Pook volre7900Page 7 of 16 consequences of the cash BelSign Language Hearing Co LtdIncome StatementYear Ended October 31,2021Revenues and gains:Sales revenue850,000Gain on sale of equipmentInterest revenueTotal revenues and gainsExpensesCost of goods soldSalary expenseDepreciation expense2,500852,500465,50065,50024,000Rent expenseLoss on sale of equipment49,5002,500Total expensesIncome before income taxesIncome tax expenseNet Profit OA607,000245,50038,000207,500NotesPurchase of equipmentCash receipt from sale of equipment.Issuance of bonds payable to borrow cashCash receipt from issuance of common stockDividend paidBook value of equipment soldPurchase of treasury stock I243,00076,500100,00040,000112,50079,00090,000286,0007900050,00-7 66Y Page 8 of 16

Answered: Image /qna-images/answer/171336da-1db2-493d-9ea3-081db2ac1402.jpg

Sign Language Hearing Co Ltd Income Statement Year Ended October 31,2021 Revenues and gains: Sales revenue 850,000 Gain on sale of equipment Interest revenue 2,500 Total revenues and gains Expenses Cost of goods sold Salary expense Depreciation expense Rent expense Loss on sale of equipment Total expenses 852,500 465,500 65,500 24,000 49,500 2,500 Income before income taxes Income tax expense 607,000 245,500 38,000 207,500 -16 Net Profit OA 286, c 50. Notes Purchase of equipment Cash receipt from sale of equipment Issuance of bonds payable to borrow cash Cash receipt from issuance of common stock Dividend paid Book value of equipment sold Purchase of treasury stock I 243,000 76,500 100,000 40,000 112,500 79000 66,500 62:500 79,000 90,000 Page 8 of 16

Sign Language Hearing Co Ltd Income Statement Year Ended October 31,2021 Revenues and gains: Sales revenue 850,000 Gain on sale of equipment Interest revenue 2,500 Total revenues and gains Expenses Cost of goods sold Salary expense Depreciation expense Rent expense Loss on sale of equipment Total expenses 852,500 465,500 65,500 24,000 49,500 2,500 Income before income taxes Income tax expense 607,000 245,500 38,000 207,500 -16 Net Profit OA 286, c 50. Notes Purchase of equipment Cash receipt from sale of equipment Issuance of bonds payable to borrow cash Cash receipt from issuance of common stock Dividend paid Book value of equipment sold Purchase of treasury stock I 243,000 76,500 100,000 40,000 112,500 79000 66,500 62:500 79,000 90,000 Page 8 of 16

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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