The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. VIDEO PHONES, INCORPORATED 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 $1,800,000 828,000 24,000 7,700 13,500 45,000 $2,886,000 2,718,200 $ 167,800 VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 $196,620 77,700 105,000 10,080 102,000 2023 $119,460 57,000 132,000 5,040

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided.
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
VIDEO PHONES, INCORPORATED
Income Statement
For the Year Ended December 31, 2024
Accounts receivable
Inventory
Prepaid rent
Long-term assets:
Investments
Land
Assets
Current assets:
Cash
Accounts receivable
Inventory
Prepaid rent.
Long-term assets:
Investments
Land
Equipment
Accumulated depreciation
$1,800,000
828,000
24,000
7,700
13,500
45,000
$2,886,000
VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Interest payable
2,718,200
$ 167,800
VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
Income tax payable.
Long-term liabilities:
Notes payable
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity
2024
Show Transcribed Text
$196,620
77,700
105,000
10,080
102,000
207,000
2024
$196,620
77,700
105,000
10,080
102,000
207,000
264,000
(65,400)
$897,000
$ 63,300
5,700
14,700
279,000
2023
270,000
264,300
$897,000
$119,460
57,000
132,000
5,040
234,000
2023
$119,460
57,000
132,000
5,040
0
234,000
207,000
(41,400)
$713,100
$ 78,000
19,400
13,700
222,000
270,000
120,000
$713,100
Transcribed Image Text:The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. 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 VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Assets Current assets: Cash Accounts receivable Inventory Prepaid rent. Long-term assets: Investments Land Equipment Accumulated depreciation $1,800,000 828,000 24,000 7,700 13,500 45,000 $2,886,000 VIDEO PHONES, INCORPORATED Balance Sheets December 31 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable 2,718,200 $ 167,800 VIDEO PHONES, INCORPORATED Balance Sheets December 31 Income tax payable. Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2024 Show Transcribed Text $196,620 77,700 105,000 10,080 102,000 207,000 2024 $196,620 77,700 105,000 10,080 102,000 207,000 264,000 (65,400) $897,000 $ 63,300 5,700 14,700 279,000 2023 270,000 264,300 $897,000 $119,460 57,000 132,000 5,040 234,000 2023 $119,460 57,000 132,000 5,040 0 234,000 207,000 (41,400) $713,100 $ 78,000 19,400 13,700 222,000 270,000 120,000 $713,100
Additional Information for 2024:
1. Purchased investment in bonds for $102,000.
2. Sold land for $19,300. The land originally was purchased for $27,000, resulting in a $7,700 loss being recorded at the time of the
sale
3. Purchased $57,000 in equipment by issuing a $57,000 long-term note payable to the seller. No cash was exchanged in the
transaction
4. Declared and paid a cash dividend of $23,500.
Required:
Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note.
(Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)
Transcribed Image Text:Additional Information for 2024: 1. Purchased investment in bonds for $102,000. 2. Sold land for $19,300. The land originally was purchased for $27,000, resulting in a $7,700 loss being recorded at the time of the sale 3. Purchased $57,000 in equipment by issuing a $57,000 long-term note payable to the seller. No cash was exchanged in the transaction 4. Declared and paid a cash dividend of $23,500. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)
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