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Under the direct method, the total taxes paid is

Under the direct method, the total taxes paid is

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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Bramble Corp. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Bramble Corp. for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Sales revenue Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income INCOME STATEMENT For the Year Ended December 31, 2022 BALANCE SHEETS $607000 (321000) The following additional data were provided: $138000. $60000. O $99000. O $39000. 12/31/22 $408000 358000 $1435000 193000 383000 $598000 286000 $ 177000 354000 362000 $1435000 189000 353000 $961000 (302000) $8410000 7151000 1259000 791000 468000 72000 396000 99000 $297000 12/31/21 $193000 218000 482000 659000 $1552000 $97000 393000 600000 215000 247000 1. Dividends for the year 2022 were $191000. 2. During the year, equipment was sold for $239000. This equipment cost $351000 originally and had a book value of $286000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Under the direct method, the total taxes paid is $1552000
Transcribed Image Text:Bramble Corp. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Bramble Corp. for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Sales revenue Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income INCOME STATEMENT For the Year Ended December 31, 2022 BALANCE SHEETS $607000 (321000) The following additional data were provided: $138000. $60000. O $99000. O $39000. 12/31/22 $408000 358000 $1435000 193000 383000 $598000 286000 $ 177000 354000 362000 $1435000 189000 353000 $961000 (302000) $8410000 7151000 1259000 791000 468000 72000 396000 99000 $297000 12/31/21 $193000 218000 482000 659000 $1552000 $97000 393000 600000 215000 247000 1. Dividends for the year 2022 were $191000. 2. During the year, equipment was sold for $239000. This equipment cost $351000 originally and had a book value of $286000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Under the direct method, the total taxes paid is $1552000
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