Philly Corporation Philly Corporation Income Statement Comparative Account Information Relating to Operations For the Year Ended December 31, 2020 For the Year Ended December 31, 2020 2020 2019 Sales Revenue 680,000 Accounts receivable -net 78,000 65,000 Cost of goods sold 355,000 Prepaid insurance 5,000 6,000 Salaries expense 50,000 Equipment 111,100 122,400 Depreciation expense equipment 6,800 Accumulated Depreciation 13,800 14,600 Interest expense 8,000 Land 56,000 36,000 Bad debt expense 2,400 Accounts Payable 59,000 47,000 Loss on sale of equipment 4,800 Interest payable 600 1,500 Miscellaneous expenses 900 Income taxes payable 4,200 6,000 Income taxes 65,525 Unearned Revenues 20,000 14,000 Net income 186,575 Additional information: Equipment whose original cost was $33,000 was sold in 2020 The allowance for doubtful accounts was $3,500 and $3,900 as of December 31, 2019 and 2020 respectively Shares with a fair market value of $3,500 were issued in exchange for land. Required- a) Prepare the cash flow of operations using the direct method. b) Prepare the cash from investing section of the cash flow statement.
Philly Corporation Philly Corporation Income Statement Comparative Account Information Relating to Operations For the Year Ended December 31, 2020 For the Year Ended December 31, 2020 2020 2019 Sales Revenue 680,000 Accounts receivable -net 78,000 65,000 Cost of goods sold 355,000 Prepaid insurance 5,000 6,000 Salaries expense 50,000 Equipment 111,100 122,400 Depreciation expense equipment 6,800 Accumulated Depreciation 13,800 14,600 Interest expense 8,000 Land 56,000 36,000 Bad debt expense 2,400 Accounts Payable 59,000 47,000 Loss on sale of equipment 4,800 Interest payable 600 1,500 Miscellaneous expenses 900 Income taxes payable 4,200 6,000 Income taxes 65,525 Unearned Revenues 20,000 14,000 Net income 186,575 Additional information: Equipment whose original cost was $33,000 was sold in 2020 The allowance for doubtful accounts was $3,500 and $3,900 as of December 31, 2019 and 2020 respectively Shares with a fair market value of $3,500 were issued in exchange for land. Required- a) Prepare the cash flow of operations using the direct method. b) Prepare the cash from investing section of the cash flow statement.
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 16P: FINANCIAL STATEMENTS The Davidson Corporation's balance sheet and income statement are provided...
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Question
Philly Corporation | Philly Corporation | ||||||
Income Statement | Comparative Account Information Relating to Operations | ||||||
For the Year Ended December 31, 2020 | For the Year Ended December 31, 2020 | ||||||
2020 | 2019 | ||||||
Sales Revenue | 680,000 | 78,000 | 65,000 | ||||
Cost of goods sold | 355,000 | Prepaid insurance | 5,000 | 6,000 | |||
Salaries expense | 50,000 | Equipment | 111,100 | 122,400 | |||
6,800 | 13,800 | 14,600 | |||||
Interest expense | 8,000 | Land | 56,000 | 36,000 | |||
2,400 | Accounts Payable | 59,000 | 47,000 | ||||
Loss on sale of equipment | 4,800 | Interest payable | 600 | 1,500 | |||
Miscellaneous expenses | 900 | Income taxes payable | 4,200 | 6,000 | |||
Income taxes | 65,525 | Unearned Revenues | 20,000 | 14,000 | |||
Net income | 186,575 | ||||||
Additional information: | |||||||
Equipment whose original cost was $33,000 was sold in 2020 | |||||||
The allowance for doubtful accounts was $3,500 and $3,900 as of December 31, 2019 and 2020 respectively | |||||||
Shares with a fair market value of $3,500 were issued in exchange for land. | |||||||
Required- | |||||||
a) Prepare the cash flow of operations using the direct method. | |||||||
b) Prepare the cash from investing section of the cash flow statement. |
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