VALUE CORPORATION Income Statement Year Ended June 30, 2018 Net Sales Revenue $ 233,000 Cost of Goods Sold 104,000 Gross Profit 129,000 Operating Expenses: Salaries Expense $ 48,000 Depreciation Expense-Plant Assets 21,000 Advertising Expense 12,000 Total Operating Expenses 81,000 Operating Income 48,000 Other Income and (Expenses): Dividend Revenue 7,000 Interest Expense (2,500) Total Other Income and (Expenses) 4,500 Net Income Before Income Taxes 52,500 Income Tax Expense 7,500 Net Income $ 45,000
Preparing the statement of
The income statement and additional data of Value Corporation follow:
a. Collections from customers are $13,000 more than sales.
b. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
c. Payments to suppliers are the sum of cost of goods sold plus advertising expense.
d. Payments to employees are $3,000 more than salaries expense.
e. Cash payment for the acquisition of plant assets is $102,000.
f. Cash receipts from sale of land total $29,000.
g. Cash receipts from issuance of common stock total $38,000.
h. Payment of long-term notes payable is $10,000.
i. Payment of dividends is $9,000.
j Cash balance at June 30, 2017, was $21,000; at June 30, 2018, it was $43,000.
Prepare Value Corporations statement of cash flows for the year ended June 30, 2018. Use the direct method.
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