The comparative balance sheet of Gus Company at December 31, 2024 and 2023 appears below: Assets: 12/31/2024 12/31/2023 Cash $ 53,000 $ 120,000 Accounts receivable (net) 37,000 48,000 Inventories 108,500 100,000 Equipment 573,200 450,000 Accumulated depreciation-equipment (142,000) (176,000) $629,700 $542,000 Liabilities & Stockholders Equity: Accounts payable $ 62,500 $ 43,800 Bonds payable, due June 2024 0 100,000 Common stock, $10 par 335,000 285,000 Paid-in capital in excess of par - Common stock 74,000 55,000 Retained earnings 158,200 58,200 $629,700 $542,000 The income statement for the year ended December 31, 2024 appears below: Sales $625,700 Cost of merchandise sold 340,000 Gross profit 285,700 Operating expenses (includes $26,000 depreciation expense) 94,000 Operating Income 191,700 Interest expense 6,000 Income before income tax 185,700 Income tax 60,700 Net income $125,000 Also in 2024, fully depreciated equipment costing $60,000 was scrapped at no salvage value and 5,000 shares of common stock were issued for cash. Cash flows from financing activities for the year ended December 31, 2024 are? negative $31,000 positive $44,000 negative $56,000 negative $100,000
The comparative
Assets:
12/31/2024
12/31/2023
Cash
$ 53,000
$ 120,000
37,000
48,000
Inventories
108,500
100,000
Equipment
573,200
450,000
(142,000)
(176,000)
$629,700
$542,000
Liabilities &
Accounts payable
$ 62,500
$ 43,800
Bonds payable, due June 2024
0
100,000
Common stock, $10 par
335,000
285,000
Paid-in capital in excess of par - Common stock
74,000
55,000
158,200
58,200
$629,700
$542,000
The income statement for the year ended December 31, 2024 appears below:
Sales
$625,700
Cost of merchandise sold
340,000
Gross profit
285,700
Operating expenses (includes $26,000 depreciation expense)
94,000
Operating Income
191,700
Interest expense
6,000
Income before income tax
185,700
Income tax
60,700
Net income
$125,000
Also in 2024, fully depreciated equipment costing $60,000 was scrapped at no salvage value and 5,000 shares of common stock were issued for cash.
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