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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
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
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
flow

Transcribed Image Text: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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