Preparing the statement of cash flows-indirect methodThe income statement of Boost Plus, Inc. follows:Additional data follow:a. Acquisition of plant assets is $124,000. Of this amount, $108,000 is paid in cash and $16,000 by signing a note payable.b. Cash receipt from sale of land totals $20,000. There was no gain or loss.c. Cash receipts from issuance of common stock total $36,000.d. Payment of notes payable is $15,000.e. Payment of dividends is $5,000.f. From the balance sheet:Prepare Boost Plus’s statement of cash flows for the year ended September 30, 2018, using the indirect method Include a separate section for non-cash investing and financing activities. BOOST PLUS, INC.Income StatementYear Ended September 30, 2018Net Sales Revenue$ 231,000Cost of Goods Sold94,000Gross Profit137,000Operating Expenses:Salaries Expense$ 54,000Depreciation Expense-Plant Assets27,000Total Operating Expenses81,000Net Income Before Income Taxes56,000Income Tax Expense3,000Net Income$ 53,000 September 3020182017Cash$ 39,000$ 13,000Accounts Receivable46,00061,000Merchandise Inventory94,00088,000Land82,000102,000Plant Assets214,00090,000Accumulated Depreciation(61,000)(34,000)Accounts Payable32,00015,000Accrued Liabilities12,00020,000Notes Payable (long-term)16,00015,000Common Stock, no par40,0004,000Retained Earnings314,000266,000

Workings: Calculation of Depreciation: 61000 - 40000 = 21000 Accounts receivables: 46000 - 61000…

Answered: BOOST PLUS, INC. Income Statement Year…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter1: Introduction To Business Activities And Overview Of Financial Statements And The Reporting Process

Section: Chapter Questions

Problem 23E

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Preparing the statement of cash flows-indirect methodThe income statement of Boost Plus, Inc. follows:

Additional data follow:

a. Acquisition of plant assets is $124,000. Of this amount, $108,000 is paid in cash and $16,000 by signing a note payable.

b. Cash receipt from sale of land totals $20,000. There was no gain or loss.

c. Cash receipts from issuance of common stock total $36,000.

d. Payment of notes payable is $15,000.

e. Payment of dividends is $5,000.

f. From the balance sheet:

Prepare Boost Plus’s statement of cash flows for the year ended September 30, 2018, using the indirect method Include a separate section for non-cash investing and financing activities.

BOOST PLUS, INC.
Income Statement
Year Ended September 30, 2018
Net Sales Revenue
$ 231,000
Cost of Goods Sold
94,000
Gross Profit
137,000
Operating Expenses:
Salaries Expense
$ 54,000
Depreciation Expense-Plant Assets
27,000
Total Operating Expenses
81,000
Net Income Before Income Taxes
56,000
Income Tax Expense
3,000
Net Income
$ 53,000

September 30
2018
2017
Cash
$ 39,000
$ 13,000
Accounts Receivable
46,000
61,000
Merchandise Inventory
94,000
88,000
Land
82,000
102,000
Plant Assets
214,000
90,000
Accumulated Depreciation
(61,000)
(34,000)
Accounts Payable
32,000
15,000
Accrued Liabilities
12,000
20,000
Notes Payable (long-term)
16,000
15,000
Common Stock, no par
40,000
4,000
Retained Earnings
314,000
266,000

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