E16A-28 Preparing the statement of cash flows—direct method The income statement and additional data of Value Corporation follow: a. Collections from customers are $13,000 more than sales.b. Dividend revenue, interest expense, and income tax expense equal their cash amounts.c. Payments to suppliers are the sum of cost of goods sold plus advertising expense.d. Payments to employees are $3,000 more than salaries expense.e. Cash payment for the acquisition of plant assets is $102,000.f. Cash receipts from sale of land total $29,000.g. Cash receipts from issuance of common stock total $38,000.h. Payment of long-term notes payable is $10,000.i. Payment of dividends is $9,000.j. Cash balance at June 30, 2017, was $21,000; at June 30, 2018, it was $43,000.Prepare Value Corporation’s statement of cash flows for the year ended June 30, 2018. Use the direct method. Learning Objective 4Appendix 16AE16A-28 Preparing the statement of cash flows-direct methodThe income statement and additional data of Value Corporation follow:Net Cash Prov. by Op.Act. $76,000VALUE CORPORATIONIncome StatementYear Ended June 30, 2018Net Sales Revenue$ 233,000Cost of Goods Sold104,000Gross Profit129,000Operating Expenses:Salaries Expense$ 48,000Depreciation Expense-Plant Assets21,000Advertising Expense12,000Total Operating Expenses81,000Operating Income48,000Other Income and (Expenses):Dividend Revenue7,000Interest Expense(2,500)Total Other Income and (Expenses)4,500Net Income Before Income Taxes52,500Income Tax Expense7,500Net Income$ 45,000a. Collections from customers are $13,000 more than sales.b. Dividend revenue, interest expense, and income tax expense equal their cashamounts.c. Payments to suppliers are the sum of cost of goods sold plus advertisingexpense.d. Payments to employees are $3,000 more than salaries expense.e. Cash payment for the acquisition of plant assets is $102,000.f. Cash rececipts from sale of land total $29,000.g Cash receipts from issuance of common stock total $38,000,h. Payment of long-term notes payable is $10,000,i. Payment of dividends is $9,000.j. Cash balance at June 30, 2017, was $21,000; at June 30, 2018, it was $43,000.Prepare Value Corporation's statement of cash flows for the year ended June 30, 2018.Use the direct method.

Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Preparing the statement of cash flows—direct method The income statement and additional data of Value Corporation follow: a. Collections from customers are $13,000 more than sales. b. Dividend revenue, interest expense, and income tax expense equal their cash amounts. c. Payments to suppliers are the sum of cost of goods sold plus advertising expense. d. Payments to employees are $3,000 more than salaries expense. e. Cash payment for the acquisition of plant assets is $102,000. f. Cash receipts from sale of land total $29,000. g. Cash receipts from issuance of common stock total $38,000. h. Payment of long-term notes payable is $10,000. i. Payment of dividends is $9,000. j. Cash balance at June 30, 2017, was $21,000; at June 30, 2018, it was $43,000. Prepare Value Corporation’s statement of cash flows for the year ended June 30, 2018. Use the direct method.

Preparing the statement of cash flows—direct method The income statement and additional data of Value Corporation follow: a. Collections from customers are $13,000 more than sales. b. Dividend revenue, interest expense, and income tax expense equal their cash amounts. c. Payments to suppliers are the sum of cost of goods sold plus advertising expense. d. Payments to employees are $3,000 more than salaries expense. e. Cash payment for the acquisition of plant assets is $102,000. f. Cash receipts from sale of land total $29,000. g. Cash receipts from issuance of common stock total $38,000. h. Payment of long-term notes payable is $10,000. i. Payment of dividends is $9,000. j. Cash balance at June 30, 2017, was $21,000; at June 30, 2018, it was $43,000. Prepare Value Corporation’s statement of cash flows for the year ended June 30, 2018. Use the direct method.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.2AP

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