I need help on this: The Arctic Company's income statement and comparative balance sheets at December 31 of 2019 and 2018 are shown below: Sales revenue $645,000 Cost of goods sold $430,000 Wages expense 91,000 Insurance expense 12,000 Depreciation expense 13,000 Interest expense 15,000 Income tax expense 29,000 590,000 Net income 55,000 Balance sheet: Dec 31, 2019 Dec 31, 2018 Assets Cash $41,000 $8,000 Accounts receivable 41,000 32,000 Inventory 90,000 65,000 Prepaid insurance 5,000 7,000 Plant assets 219,000 202,000 Accumlated depreciation (68,000) (55,000) Total assests $328,000 $259,000 Liabilities and Stockholer's equitu Accounts payable 7,000 10,000 Wages payable 10,000 6,000 Income tax payable 6,000 7,000 Bonds payable 141,000 87,000 Common stock 90,000 90,000 Retained earnings 74,000 59,000 Total liabilities and stockholder's equity $328,000 $259,000 Cash dividends of $40,000 were declared and paid during 2019. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise purchases. Required: a) Calculate the change in cash that occured during 2019 b) Prepare a statement of cash flows using the indirect method c) Computer free cash flow
I need help on this: The Arctic Company's income statement and comparative balance sheets at December 31 of 2019 and 2018 are shown below: Sales revenue $645,000 Cost of goods sold $430,000 Wages expense 91,000 Insurance expense 12,000 Depreciation expense 13,000 Interest expense 15,000 Income tax expense 29,000 590,000 Net income 55,000 Balance sheet: Dec 31, 2019 Dec 31, 2018 Assets Cash $41,000 $8,000 Accounts receivable 41,000 32,000 Inventory 90,000 65,000 Prepaid insurance 5,000 7,000 Plant assets 219,000 202,000 Accumlated depreciation (68,000) (55,000) Total assests $328,000 $259,000 Liabilities and Stockholer's equitu Accounts payable 7,000 10,000 Wages payable 10,000 6,000 Income tax payable 6,000 7,000 Bonds payable 141,000 87,000 Common stock 90,000 90,000 Retained earnings 74,000 59,000 Total liabilities and stockholder's equity $328,000 $259,000 Cash dividends of $40,000 were declared and paid during 2019. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise purchases. Required: a) Calculate the change in cash that occured during 2019 b) Prepare a statement of cash flows using the indirect method c) Computer free cash flow
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...
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I need help on this:
The Arctic Company's income statement and comparative balance sheets at December 31 of 2019 and 2018 are shown below:
Sales revenue | $645,000 | |
Cost of goods sold | $430,000 | |
Wages expense | 91,000 | |
Insurance expense | 12,000 | |
13,000 | ||
Interest expense | 15,000 | |
Income tax expense | 29,000 | 590,000 |
Net income | 55,000 |
Balance sheet:
Dec 31, 2019 | Dec 31, 2018 | |
Assets | ||
Cash | $41,000 | $8,000 |
Accounts receivable | 41,000 | 32,000 |
Inventory | 90,000 | 65,000 |
Prepaid insurance | 5,000 | 7,000 |
Plant assets | 219,000 | 202,000 |
Accumlated depreciation | (68,000) | (55,000) |
Total assests | $328,000 | $259,000 |
Liabilities and Stockholer's equitu | ||
Accounts payable | 7,000 | 10,000 |
Wages payable | 10,000 | 6,000 |
Income tax payable | 6,000 | 7,000 |
Bonds payable | 141,000 | 87,000 |
Common stock | 90,000 | 90,000 |
74,000 | 59,000 | |
Total liabilities and |
$328,000 | $259,000 |
Cash dividends of $40,000 were declared and paid during 2019. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise purchases.
Required:
a) Calculate the change in cash that occured during 2019
b) Prepare a statement of cash flows using the indirect method
c) Computer
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