Using the data from questions in the picture, prepare the operating section of the statement of cash flows using the direct method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Using the data from questions in the picture, prepare the operating section of the statement of cash flows using the direct method.

Juneau Corporation
Income Statement
Year Ended December 31, 2019
Sales
$
210,000
Cost of Goods Sold
87,500
Gross profit
122,500
Operating expenses
95,900
Depreciation expense
10,500
Income from operations
16, 100
Other revenues and gains
Dividend revenue
$
1,575
Gain on sale of long term investment
5,250
6,825
22,925
Other expenses and losses
Losson sale of equipment
1,050
Interest expense
3,500
4,550
Income before income tax
18,375
Income tax
4,375
Netincome
$
14,000
Transcribed Image Text:Juneau Corporation Income Statement Year Ended December 31, 2019 Sales $ 210,000 Cost of Goods Sold 87,500 Gross profit 122,500 Operating expenses 95,900 Depreciation expense 10,500 Income from operations 16, 100 Other revenues and gains Dividend revenue $ 1,575 Gain on sale of long term investment 5,250 6,825 22,925 Other expenses and losses Losson sale of equipment 1,050 Interest expense 3,500 4,550 Income before income tax 18,375 Income tax 4,375 Netincome $ 14,000
Juneau Corporation
Balance Sheet
December 31, 2019
2019
2018
Assets
Current assets
Cash
$
1,750 $
1,400
Accounts receivable
7,875
5,425
Inventory
33,250
28,000
Prepaid expenses
1,225
1,050
Total current assets
44,100
35,875
Long term assets
Long term investments
17,500
21,000
Land
15,750
7,000
Buildings
100,000
100,000
Accumulated depreciation
61,500
58,000
Equipment
36,750
28,000
Accumulated depreciation
10,500
7,000
Total long term assets
98,000
142,100 $
91,000
Total assets
126,875
Liabilities and Shareholder's Equity
Currentliabilities
Accounts payable
15,750 $
17,500
Accrued liabilities
9,275
7,350
Interest payable
1,225
1,400
Current liabilities
26,250
26, 250
Long term liabilities
Notes payable
Bonds payable
8,750
6, 125
43,750
38,500
Total liabilities
78,750
70,875
Share hol der's Equity
Common shares
24,500
24,500
Retained earnings
Total shareholder's equity
Total liabilities and shareholder's equity
38,850
31,500
63,350
56,000
$
142,100 $
126,875
Transcribed Image Text:Juneau Corporation Balance Sheet December 31, 2019 2019 2018 Assets Current assets Cash $ 1,750 $ 1,400 Accounts receivable 7,875 5,425 Inventory 33,250 28,000 Prepaid expenses 1,225 1,050 Total current assets 44,100 35,875 Long term assets Long term investments 17,500 21,000 Land 15,750 7,000 Buildings 100,000 100,000 Accumulated depreciation 61,500 58,000 Equipment 36,750 28,000 Accumulated depreciation 10,500 7,000 Total long term assets 98,000 142,100 $ 91,000 Total assets 126,875 Liabilities and Shareholder's Equity Currentliabilities Accounts payable 15,750 $ 17,500 Accrued liabilities 9,275 7,350 Interest payable 1,225 1,400 Current liabilities 26,250 26, 250 Long term liabilities Notes payable Bonds payable 8,750 6, 125 43,750 38,500 Total liabilities 78,750 70,875 Share hol der's Equity Common shares 24,500 24,500 Retained earnings Total shareholder's equity Total liabilities and shareholder's equity 38,850 31,500 63,350 56,000 $ 142,100 $ 126,875
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