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 Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable $2,450,000 958,000 37,000 9,000 20,000 58,000 Additional Information for 2024: Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $3,636,000 VIDEO PHONES, INCORPORATED Balance Sheets December 31 3,532,000 $ 184,000 2824 $ 254,680 92,000 185,000 14,400 115,000 228,800 290,000 (81,000) $1,010,000 $ 75,000 7,000 16,800 305,000 480,000 207,009 $1,010,000 2823 VIDEA DUANCE INDARRADATED $ 227,808 70,000 145,000 7,280 0 260,000 229,000 (44,000) $886,000 $ 91,800 12,000 15,000 235,000 400,000 133,800 $886,000 1. Purchased investment in bonds for $115,000. 2. Sold land for $31,000. The land originally was purchased for $40,000, resulting in a $9,000 loss being recorded at the time of the sale. 3. Purchased $70,000 in equipment by issuing a $70.000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $30,000. 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.)
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 Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable $2,450,000 958,000 37,000 9,000 20,000 58,000 Additional Information for 2024: Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $3,636,000 VIDEO PHONES, INCORPORATED Balance Sheets December 31 3,532,000 $ 184,000 2824 $ 254,680 92,000 185,000 14,400 115,000 228,800 290,000 (81,000) $1,010,000 $ 75,000 7,000 16,800 305,000 480,000 207,009 $1,010,000 2823 VIDEA DUANCE INDARRADATED $ 227,808 70,000 145,000 7,280 0 260,000 229,000 (44,000) $886,000 $ 91,800 12,000 15,000 235,000 400,000 133,800 $886,000 1. Purchased investment in bonds for $115,000. 2. Sold land for $31,000. The land originally was purchased for $40,000, resulting in a $9,000 loss being recorded at the time of the sale. 3. Purchased $70,000 in equipment by issuing a $70.000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $30,000. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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
Equipment
Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Interest payable
$2,450,000
958,000
37,000
9,000
20,000
58,000
Additional Information for 2024:
Income tax payable
Long-term liabilities:
Notes payable
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity
$3,636,000
VIDEO PHONES, INCORPORATED
Balance Sheets
December 31
3,532,000
$ 184,000
2824
$ 254,680
92,000
185,000
14,400
115,000
228,800
290,000
(81,000)
$1,010,000
$ 75,000
7,000
16,800
305,000
480,000
207,009
$1,010,000
2823
VIDEA DUANCE INDARRADATED
$ 227,808
70,000
145,000
7,280
0
260,000
229,000
(44,000)
$886,000
$ 91,800
12,000
15,000
235,000
400,000
133,800
$886,000
1. Purchased investment in bonds for $115,000.
2. Sold land for $31,000. The land originally was purchased for $40,000, resulting in a $9,000 loss being recorded at the time of the
sale.
3. Purchased $70,000 in equipment by issuing a $70.000 long-term note payable to the seller. No cash was exchanged in the
transaction.
4. Declared and paid a cash dividend of $30,000.
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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