You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information. 1. Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about each line item. 2. Prepare an income statement for 2021 and 2022 for the company. 3. For the year ending 2022, determine the Net New Equity, Change in Net Working Capital, Net Capital Spending and Operating Cash flow. Life-Positive's Account 2021 ($)BalancesAccounts Payable 24,600.00 21,250.00Accounts receivable 15,700.00 12,340.00Cash 23,450.00 28,600.0019,700.00 23,000.00Depreciation 3,090.00 4,590.00Dividends 5,800.00 10,800.00Interest 2,340.00 2,890.00Inventory 7,050.00 8,640.00Long-term debt 28,000.00 30,000.00Net fixed assets 41,500.00 48,000.00Other expenses 2,400.00 2,800.00Cost of goods sold2022 ($)Sales 58,000.00 62,500.00Short-term Notes Payable 2,890.00 2,340.00The tax rate is 32%Shares outstanding 85,000.00 90,000.00

Income Statement An income statement displays the earnings, costs, and a company's profitability…

Answered: You work as a freelance 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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You work as a freelance accounting professional and have been
recently engaged by the auditors of Life-Positive Inc. for an
assignment. In examining the company’s records, you have extracted
the following information.

1. Prepare a balance sheet for 2021 and 2022 for the company,
clearly showing information about each line item.
2. Prepare an income statement for 2021 and 2022 for the company.

3. For the year ending 2022, determine the Net New Equity, Change
in Net Working Capital, Net Capital Spending and Operating Cash
flow.

Life-Positive's Account 2021 ($)
Balances
Accounts Payable 24,600.00 21,250.00
Accounts receivable 15,700.00 12,340.00
Cash 23,450.00 28,600.00
19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00 10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00 8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Cost of goods sold
2022 ($)
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
The tax rate is 32%
Shares outstanding 85,000.00 90,000.00

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