Use the following financial statements and additional information. ARNOLD INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity ARNOLD INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 81,000 97,000 2019 $ 77,900 73,000 63,000 5,800 219,700 186,000 (45,000) $360,700 $ 26,000 8,000 4,000 38,000 33,000 71,000 240,000 49,700 $360,700 $ 978,000 599,000 379,000 $ 178,000 201,000 5,800 206,800 63,300 $ 143,500 2018 $17,100 57,000 88,000 7,300 169,400 172,000 (15,000) $326,400 $32,000 19,000 4,400 55,400 65,000 120,400 170,000 36,000 $326,400 Additional Information a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $79,000 cash. d. Received cash for the sale of equipment that had cost $65,000, yielding a $5,800 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit.
Use the following financial statements and additional information. ARNOLD INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity ARNOLD INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 81,000 97,000 2019 $ 77,900 73,000 63,000 5,800 219,700 186,000 (45,000) $360,700 $ 26,000 8,000 4,000 38,000 33,000 71,000 240,000 49,700 $360,700 $ 978,000 599,000 379,000 $ 178,000 201,000 5,800 206,800 63,300 $ 143,500 2018 $17,100 57,000 88,000 7,300 169,400 172,000 (15,000) $326,400 $32,000 19,000 4,400 55,400 65,000 120,400 170,000 36,000 $326,400 Additional Information a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $79,000 cash. d. Received cash for the sale of equipment that had cost $65,000, yielding a $5,800 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Please help me
Transcribed Image Text:Use the following financial statements and additional information.
ARNOLD INCORPORATED
Comparative Balance Sheets
June 30, 2019 and 2018
Assets
Cash
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
Equipment
Accumulated depreciation-Equipment
Total assets
Liabilities and Equity
Accounts payable
Wages payable
Income taxes payable
Total current liabilities
Notes payable (long term)
Total liabilities
Equity
Common stock, $5 par value
Retained earnings
Total liabilities and equity
ARNOLD INCORPORATED
Income Statement
For Year Ended June 30, 2019
Sales
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Other expenses
Total operating expenses
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense
Net income
$ 81,000
97,000
2019
$ 77,900
73,000
63,000
5,800
219,700
186,000
(45,000)
$360,700
$ 26,000
8,000
4,000
38,000
33,000
71,000
240,000
49,700
$360,700
$ 978,000
599,000
379,000
$ 178,000
201,000
5,800
206,800
63,300
$ 143,500
2018
$ 17,100
57,000
88,000
7,300
169,400
172,000
(15,000)
$326,400
$ 32,000
19,000
4,400
55,400
65,000
120,400
170,000
36,000
$326,400
Additional Information
a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash.
b. The only changes affecting retained earnings are net income and cash dividends paid.
c. New equipment is acquired for $79,000 cash.
d. Received cash for the sale of equipment that had cost $65,000, yielding a $5,800 gain.
e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f. All purchases and sales of inventory are on credit.
Transcribed Image Text:Cash flows from operating activities:
ARNOLD INCORPORATED
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2019
Adjustments to reconcile net income to net cash provided by operating activities:
Income statement items not affecting cash
Changes in current operating assets and liabilities
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education