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The income statement, balance sheets, and additional information for Cloud Mangu are provided. CLOUD HANGU Income Statement For the Year Ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land $ 1,900,000 848,000 26,000 7,900 14,500 47,000 CLOUD MANGU Balance Sheets December 31 $ 2,986,000 2,043,400 $ 142,600 2024 2023 $ 190,340 $ 136,220 79,900 59,000 105,000 134,000 10,560 5,280 104,000 209,000 238,000

The income statement, balance sheets, and additional information for Cloud Mangu are provided. CLOUD HANGU Income Statement For the Year Ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land $ 1,900,000 848,000 26,000 7,900 14,500 47,000 CLOUD MANGU Balance Sheets December 31 $ 2,986,000 2,043,400 $ 142,600 2024 2023 $ 190,340 $ 136,220 79,900 59,000 105,000 134,000 10,560 5,280 104,000 209,000 238,000

FINANCIAL ACCOUNTING
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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Note: Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign. Disclose any noncash transactions in an accompanying note. Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Increase in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in accounts payable Decrease in interest payable Increase in income tax payable Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in bonds Gain (on sale of land) CLOUD MANGU Statement of Cash Flows For the Year Ended December 31, 2024 Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Purchase equipment by issuing a note payable $ 129,200 35,000 8,800 21,800 38,000 (6,960) 15,800 (4,800) 1,000 (113,000) 29,200 (29,000) 'S 237,840 $ HET $ (83,800) (29,000) 31,360 211,040 242,400 68,000
Transcribed Image Text:Note: Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign. Disclose any noncash transactions in an accompanying note. Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Increase in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in accounts payable Decrease in interest payable Increase in income tax payable Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in bonds Gain (on sale of land) CLOUD MANGU Statement of Cash Flows For the Year Ended December 31, 2024 Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Purchase equipment by issuing a note payable $ 129,200 35,000 8,800 21,800 38,000 (6,960) 15,800 (4,800) 1,000 (113,000) 29,200 (29,000) 'S 237,840 $ HET $ (83,800) (29,000) 31,360 211,040 242,400 68,000
The income statement, balance sheets, and additional information for Cloud Mangu are provided. CLOUD MANGU Income Statement For the Year Ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Accounts payable Interest payable Income tax payable. $ 1,900,000 848,000 26,000 7,900 14,500 47,000 Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Long-term Liabilities: Notes payable. Stockholders' equity: Common stock CLOUD MANGU Balance Sheets December 31 Retained earnings Total liabilities and stockholders' equity $ 2,986,000 2,843,400 $ 142,600 2024 $ 190,340 $ 136,220 79,900 105,000 10,560 104,000 209,000 268,000 (67,800) $ 899,000 2023 $ 65,100 5,900 14,900 59,000 134,000 5,280 238,000 209,000 (41,800) $ 739,700 $ 80,000 9,800 13,900 224,000 290,000 122,000 283,000 290,000 240,100 $ 899,000 $ 739,709 Additional Information for 2024: 1. Purchased investment in bonds for $104,000. 2. Sold land for $21,100. The land originally was purchased for $29,000, resulting in a $7,900 loss being recorded at the time of the sale, 3. Purchased $59,000 in equipment by issuing a $59,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $24,500. Required: Prepare the statement of cash flows for Cloud Mangu using the direct method. Disclose any noncash transactions in an accompanying note. Note: Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.
Transcribed Image Text:The income statement, balance sheets, and additional information for Cloud Mangu are provided. CLOUD MANGU Income Statement For the Year Ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Accounts payable Interest payable Income tax payable. $ 1,900,000 848,000 26,000 7,900 14,500 47,000 Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Long-term Liabilities: Notes payable. Stockholders' equity: Common stock CLOUD MANGU Balance Sheets December 31 Retained earnings Total liabilities and stockholders' equity $ 2,986,000 2,843,400 $ 142,600 2024 $ 190,340 $ 136,220 79,900 105,000 10,560 104,000 209,000 268,000 (67,800) $ 899,000 2023 $ 65,100 5,900 14,900 59,000 134,000 5,280 238,000 209,000 (41,800) $ 739,700 $ 80,000 9,800 13,900 224,000 290,000 122,000 283,000 290,000 240,100 $ 899,000 $ 739,709 Additional Information for 2024: 1. Purchased investment in bonds for $104,000. 2. Sold land for $21,100. The land originally was purchased for $29,000, resulting in a $7,900 loss being recorded at the time of the sale, 3. Purchased $59,000 in equipment by issuing a $59,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $24,500. Required: Prepare the statement of cash flows for Cloud Mangu using the direct method. Disclose any noncash transactions in an accompanying note. Note: Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.
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