The Balance Sheet Of Future Inc. for December 31,20Y3 and 20Y2 1 Dec. 31, 20Y3 Dec. 31, 20Y2 2 Assets 3 Cash $155,000.00 $150,000.00 4 Accounts receivable (net) 450,000.00 400,000.00 5 Inventories 770,000.00 750,000.00 6 Investments 0.00 100,000.00 7 Land 500,000.00 0.00 8 Equipment 1,400,000.00 1,200,000.00 9 Accumulated depreciation-equipment (600,000.00) (500,000.00) 10 Total assets $2,675,000.00 $2,100,000.00 11 Liabilities and Stockholders’ Equity 12 Accounts payable $340,000.00 $300,000.00 13 Accrued expenses payable 45,000.00 50,000.00 14 Dividends payable 30,000.00 25,000.00 15 Common stock, $4 par 700,000.00 600,000.00 16 Paid-in capital: Excess of issue price over par—common stock 200,000.00 175,000.00 17 Retained earnings 1,360,000.00 950,000.00 18 Total liabilities and stockholders’ equity $2,675,000.00 $2,100,000.00 Sales $3,000,000.00 2 Cost of merchandise sold 1,400,000.00 3 Gross profit $1,600,000.00 4 Operating expenses: 5 Depreciation expense $100,000.00 6 Other operating expenses 950,000.00 7 Total operating expenses 1,050,000.00 8 Operating income $550,000.00 9 Other income: 10 Gain on sale of investments 75,000.00 11 Income before income tax $625,000.00 12 Income tax expense 125,000.00 13 Net income $500,000.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: A. The investments were sold for $175,000 cash. B. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. D. The common stock was issued for cash. E. There was a $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement.
The
|
1 |
|
Dec. 31, 20Y3 |
Dec. 31, 20Y2 |
|
2 |
Assets |
|
|
|
3 |
Cash |
$155,000.00 |
$150,000.00 |
|
4 |
|
450,000.00 |
400,000.00 |
|
5 |
Inventories |
770,000.00 |
750,000.00 |
|
6 |
Investments |
0.00 |
100,000.00 |
|
7 |
Land |
500,000.00 |
0.00 |
|
8 |
Equipment |
1,400,000.00 |
1,200,000.00 |
|
9 |
|
(600,000.00) |
(500,000.00) |
|
10 |
Total assets |
$2,675,000.00 |
$2,100,000.00 |
|
11 |
Liabilities and |
|
|
|
12 |
Accounts payable |
$340,000.00 |
$300,000.00 |
|
13 |
Accrued expenses payable |
45,000.00 |
50,000.00 |
|
14 |
Dividends payable |
30,000.00 |
25,000.00 |
|
15 |
Common stock, $4 par |
700,000.00 |
600,000.00 |
|
16 |
Paid-in capital: Excess of issue price over par—common stock |
200,000.00 |
175,000.00 |
|
17 |
|
1,360,000.00 |
950,000.00 |
|
18 |
Total liabilities and stockholders’ equity |
$2,675,000.00 |
$2,100,000.00 |
|
Sales |
|
$3,000,000.00 |
|
|
2 |
Cost of merchandise sold |
|
1,400,000.00 |
|
3 |
Gross profit |
|
$1,600,000.00 |
|
4 |
Operating expenses: |
|
|
|
5 |
Depreciation expense |
$100,000.00 |
|
|
6 |
Other operating expenses |
950,000.00 |
|
|
7 |
Total operating expenses |
|
1,050,000.00 |
|
8 |
Operating income |
|
$550,000.00 |
|
9 |
Other income: |
|
|
|
10 |
Gain on sale of investments |
|
75,000.00 |
|
11 |
Income before income tax |
|
$625,000.00 |
|
12 |
Income tax expense |
|
125,000.00 |
|
13 |
Net income |
|
$500,000.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
|
A. |
The investments were sold for $175,000 cash. |
|
B. |
Equipment and land were acquired for cash. |
|
C. |
There were no disposals of equipment during the year. |
|
D. |
The common stock was issued for cash. |
|
E. |
There was a $90,000 debit to Retained Earnings for cash dividends declared. |
Prepare a statement of
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