The following financial statements were drawn from the records of Vernon Shoes: Balance Sheets As of December 31 Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment Accumulated depreciation- equipment Land Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Income Statement For the Year Ended December Sales revenue Cost of goods sold Gross margin Year 2 Operating expenses Salaries expense Depreciation expense Utilities expense Operating income Nonoperating items Interest expense $128,740 57,846 $ 27,060 66,980 113,260 29,700 257,800 (81,469) (143,060) 78,500 50,000 $460,899 $ 401,740 125, 182 0 152, 100 $ 41,335 33, 113 663 0 0 64,000 307,400 242,600 78,388 17,085 Total liabilities and equity $460,899 $ 401,740 31, Year 2 Loss on the sale of equipment Net income $ $ 582,470 (289, 225) 293, 245 Year 1 (181,270) (18,469) (12,920) 80,586 (3,129) (2,180) $ 75,277 47,830 26,490 1,325 2,410 Additional Information 1. Sold equipment costing $105,700 with accumulated depreciation of $80,060 for $23,460 cash. 2. Paid a $13,974 cash dividend to owners.
The following financial statements were drawn from the records of Vernon Shoes: Balance Sheets As of December 31 Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment Accumulated depreciation- equipment Land Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Income Statement For the Year Ended December Sales revenue Cost of goods sold Gross margin Year 2 Operating expenses Salaries expense Depreciation expense Utilities expense Operating income Nonoperating items Interest expense $128,740 57,846 $ 27,060 66,980 113,260 29,700 257,800 (81,469) (143,060) 78,500 50,000 $460,899 $ 401,740 125, 182 0 152, 100 $ 41,335 33, 113 663 0 0 64,000 307,400 242,600 78,388 17,085 Total liabilities and equity $460,899 $ 401,740 31, Year 2 Loss on the sale of equipment Net income $ $ 582,470 (289, 225) 293, 245 Year 1 (181,270) (18,469) (12,920) 80,586 (3,129) (2,180) $ 75,277 47,830 26,490 1,325 2,410 Additional Information 1. Sold equipment costing $105,700 with accumulated depreciation of $80,060 for $23,460 cash. 2. Paid a $13,974 cash dividend to owners.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.9E
Related questions
Question
![CU SLUCA
Retained earnings
17,085
Total liabilities and equity $460,899 $ 401,740
Cost of goods sold.
Gross margin
Income Statement
For the Year Ended December 31, Year 2
Sales revenue
$ 582,470
Operating expenses
Salaries expense
Depreciation expense
Utilities expense
Operating income
Nonoperating items
Interest expense
Loss on the sale of equipment
Net income
00+,וסכ
Cash Flows From Operating
Activities:
Cash receipts from customers
Cash Payments for:
Total cash outflows
78,388
Additional Information
1. Sold equipment costing $105,700 with accumulated depreciation of $80,060 for $23,460 cash.
2. Paid a $13,974 cash dividend to owners.
Cash Flows from Investing
Activities:
Required:
Analyze the data and prepare a statement of cash flows using the direct method. (Amounts to be deducted and cash
outflows should be indicated by a minus sign.)
VERNON SHOES
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash Flows from Financing
Activities:
(289, 225)
293, 245
Ending cash balance
(181,270)
(18,469)
(12,920)
80,586
(3,129)
(2,180)
$ 75,277
242, 00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4100da26-36bd-43a6-aafd-ee8e0ffe886a%2F980028a6-9cf0-4d63-9611-42a5aa2d572d%2F1jygqca_processed.png&w=3840&q=75)
Transcribed Image Text:CU SLUCA
Retained earnings
17,085
Total liabilities and equity $460,899 $ 401,740
Cost of goods sold.
Gross margin
Income Statement
For the Year Ended December 31, Year 2
Sales revenue
$ 582,470
Operating expenses
Salaries expense
Depreciation expense
Utilities expense
Operating income
Nonoperating items
Interest expense
Loss on the sale of equipment
Net income
00+,וסכ
Cash Flows From Operating
Activities:
Cash receipts from customers
Cash Payments for:
Total cash outflows
78,388
Additional Information
1. Sold equipment costing $105,700 with accumulated depreciation of $80,060 for $23,460 cash.
2. Paid a $13,974 cash dividend to owners.
Cash Flows from Investing
Activities:
Required:
Analyze the data and prepare a statement of cash flows using the direct method. (Amounts to be deducted and cash
outflows should be indicated by a minus sign.)
VERNON SHOES
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash Flows from Financing
Activities:
(289, 225)
293, 245
Ending cash balance
(181,270)
(18,469)
(12,920)
80,586
(3,129)
(2,180)
$ 75,277
242, 00
![Problem 14-21A (Algo) Using financial statements to prepare a statement of cash flows-direct method
LO 14-2, 14-3, 14-4
The following financial statements were drawn from the records of Vernon Shoes:
Balance Sheets
As of December 31
Assets
Cash
Accounts receivable
Merchandise inventory
Notes receivable
Equipment
Accumulated depreciation-
equipment
Land
Total assets
Liabilities
Accounts payable
Salaries payable
Utilities payable
Interest payable
Notes payable (long-term)
Common stock
Retained earnings
Cost of goods sold
Gross margin
Year 2
$128,740
57, 846
125, 182
$ 27,060
66,980
113,260
29,700
257,800
(81,469)
(143,060)
78,500
50,000
$460, 899 $ 401,740
0
152, 100
1,325
2,410
64,000
242, 600
17,085
Total liabilities and equity $460,899 $ 401,740
$ 41,335
33, 113
663
Cash Flows From Operating
Activities:
Cash receipts from customers
Cash Payments for:
Operating expenses
Salaries expense
Depreciation expense
Utilities expense
Operating income
Nonoperating items
Interest expense
Loss on the sale of equipment
Net income
0
Income Statement
For the Year Ended December 31, Year 2
Sales revenue
$ 582,470
0
307,400
78,388
$ 47,830
26,490
(289, 225)
293, 245
Year 1
(181,270)
(18,469)
(12,920)
80,586
(3,129)
(2,180)
$ 75,277
Additional Information
1. Sold equipment costing $105,700 with accumulated depreciation of $80,060 for $23,460 cash.
2. Paid a $13,974 cash dividend to owners.
VERNON SHOES
Statement of Cash Flows
For the Year Ended December 31, Year 2
Required:
Analyze the data and prepare a statement of cash flows using the direct method. (Amounts to be deducted and cash
outflows should be indicated by a minus sign.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4100da26-36bd-43a6-aafd-ee8e0ffe886a%2F980028a6-9cf0-4d63-9611-42a5aa2d572d%2F84l1zuk_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 14-21A (Algo) Using financial statements to prepare a statement of cash flows-direct method
LO 14-2, 14-3, 14-4
The following financial statements were drawn from the records of Vernon Shoes:
Balance Sheets
As of December 31
Assets
Cash
Accounts receivable
Merchandise inventory
Notes receivable
Equipment
Accumulated depreciation-
equipment
Land
Total assets
Liabilities
Accounts payable
Salaries payable
Utilities payable
Interest payable
Notes payable (long-term)
Common stock
Retained earnings
Cost of goods sold
Gross margin
Year 2
$128,740
57, 846
125, 182
$ 27,060
66,980
113,260
29,700
257,800
(81,469)
(143,060)
78,500
50,000
$460, 899 $ 401,740
0
152, 100
1,325
2,410
64,000
242, 600
17,085
Total liabilities and equity $460,899 $ 401,740
$ 41,335
33, 113
663
Cash Flows From Operating
Activities:
Cash receipts from customers
Cash Payments for:
Operating expenses
Salaries expense
Depreciation expense
Utilities expense
Operating income
Nonoperating items
Interest expense
Loss on the sale of equipment
Net income
0
Income Statement
For the Year Ended December 31, Year 2
Sales revenue
$ 582,470
0
307,400
78,388
$ 47,830
26,490
(289, 225)
293, 245
Year 1
(181,270)
(18,469)
(12,920)
80,586
(3,129)
(2,180)
$ 75,277
Additional Information
1. Sold equipment costing $105,700 with accumulated depreciation of $80,060 for $23,460 cash.
2. Paid a $13,974 cash dividend to owners.
VERNON SHOES
Statement of Cash Flows
For the Year Ended December 31, Year 2
Required:
Analyze the data and prepare a statement of cash flows using the direct method. (Amounts to be deducted and cash
outflows should be indicated by a minus sign.)
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