Income StatementYear Ended December 31, 20X5SaleCost of goods soldGross ProfitOperating ExpensesLoss on Sale of equipmentProfit from OperationsOther expensesInterest ExpenseProfit before Income TaxIncome Tax ExpenseProfitAdditional Information:$55,000$ 2,500CashAccounts ReceivableInventoryPrepaid ExpensesEquipmentAccumulated Depreciation - equipmentTotal Assets$340,000$250, 100$ 89,9001. Operating expenses include depreciation expense of $10,0002. Accounts Payable related to the purchase of inventory3. Equipment that cost $12,500 was sold at a loss of $2,500Account PayableInterest PayableIncome taxes payableDividends PayableLong-term Notes Payable$ 57,500$ 32,4004. New equipment was purchased during the year for $8,5005. Dividends declared and paid in 20X5 totaled $3,0006. Common shares were sold for $12,000 cash$ 3,500$ 28,900$ 12,000$ 16,9007. Interest payable in 20X5 was $800 greater than interest payable in 20X48. The company uses IFRS and do not treat dividends as part of operationsSeaforce Manufacturing Inc. comparative balance sheet at December 31 20X5Common sharesRetained EarningsTotal Liabilities & Shareholders' Equity20X520X4$6,450 $ 4,100$ 72,000 $ 6,500$110,250 $140,000$ 1,750 $ 1,020$ 96,000 $100,000$(50,000)$(42,000)$236,450$209,620$ 16,230$ 9,900$810$10$ 10,800 $ 9,500$ 1,800$ 2,800$ 54,500$135,000$ 16,310$ 62,000$123,000$ 2,410$236,450$209,620 What is the total Cash payments to suppliers when the direct method is used to prepare the cash flow statement?Multiple Choice$280,050$286,380$214,020$250,100None of the other alternatives are correctX

The cash flow statement is prepared to record the cash flow from various activities during the…

hat is the total Cash payments to suppliers when the direct method is used to prepare the cash flow statement? Multiple Choice O $280,050 $286,380 $214,020 $250,100 None of the other alternatives are correct

hat is the total Cash payments to suppliers when the direct method is used to prepare the cash flow statement? Multiple Choice O $280,050 $286,380 $214,020 $250,100 None of the other alternatives are correct

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2E: Cost of Goods Sold and Income Statement Schuch Company presents you with the following account...

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