Concept explainers
Statement of
Starland Corporation At December 31 |
|||||
Assets | Current Year | Prior Year | |||
Current Assets | |||||
Cash | $ 270,001 | $ 145,847 | |||
268,363 | 255,368 | ||||
Merchandise Inventory | 381,358 | 268,363 | |||
Prepaid Expenses | 55,000 | 75,000 | |||
Total Current Assets | $ 974,722 | $ 744,578 | |||
Noncurrent Assets | |||||
Property. Rant, and Equipment - net | $3,854,542 | $4,323,471 | |||
Total Noncurrent Assets | $3,854,542 | $4,323,471 | |||
Total Assets | $4,829,264 | $5,068,049 | |||
Liabilities | |||||
Current Liabilities | |||||
Current Portion of Long-Term Debt | $ 125,622 | $ 360,877 | |||
Accounts Payable | 528,252 | 446,695 | |||
Income Taxes Payable | 185,877 | 165,255 | |||
Total Current Liabilities | $ 839,751 | $ 972,827 | |||
Noncurrent Liabilities | |||||
Notes Payable | $ 730,854 | $ 635,597 | |||
Total Noncurrent Liabilities | S 730,854 | $ 635,597 | |||
Total Liabilities | $1.570,605 | $1,608,424 | |||
Shareholders' Equity | |||||
Common Stock. $1 par value | $ 381,358 | $ 381,358 | |||
Additional Paid-in Capital in Excess | 1,129,950 | 1,129,950 | |||
of Par - Common | |||||
2,287,351 | 2,083,317 | ||||
Total Shareholders' Equity | $3,798,659 | $3,594,625 | |||
Less: |
(540,000) | (135.000) | |||
Total Liabilities and Shareholders' Equity | $4,829,264 | $5,068,049 |
Starland Corporation Income Statement For the Current Year Ended December 31 |
|
Sales | $1,875,050 |
Cost of Goods Sold | 1,125,030 |
Gross Profit | $ 750,020 |
Selling, General, and Administrative Expenses | $ 205,000 |
4,394 | |
39,525 | |
Total Operating Expenses | $ 248,919 |
Operating Income | S 501,101 |
Loss on Disposal of Equipment | $ (50,000) |
Interest Expense | (12,500) |
Income before Tax | $ 438,601 |
Income Tax Expense | (175,440) |
Net Income | $ 263,161 |
Additional information
- during the current year
- Starland sold equipment with a carrying value of $429, 404 at a $50,000 loss.
- The company borrowed additional funds by issuing a long-term note Any debt payments made during the year reduced the current portion of long-term debt.
Required
Prepare the cash flow statement for Starland Corporation for the current year using the indirect method Provide all required disclosures.
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