Saturn Company Income Statement for year cnded Dec. 31,2018Sales RevenueCost of Goods Sold$238,000153,000Gross ProfitOperating Expenses:Depreciation ExpenseInsurance ExpenseSalaries ExpenseOther Operating ExpensesTotal Operating ExpensesOperating IncomeOther Revenue and (Expenses):Gain on Sale of LandInterest ExpenseTotal Other Revenue and ExpensesIncome Before Income TaxIncome Tax ExpenseNet Income85,000$14,40012,00042,60011,10080,1004,9004,800(3,500)1,3006,2001,860S 4,340Additional Information:1. Saturn Company sold land with an original cost of $10.000, for $14,800 cash.2. A new parcel of land was purchased for $20,000. in exchange for a note payable.3. Plant assets were purehased for $40.000 cash.4. Saturn declared and paid a $440 cash dividend to shareholders.5. Saturn issued common stock in exchange for S45.000 cash.Prepare a cash flow statement for Saturm Company using the indireet method for the year ended31 December 2018 [Question 1]Saturn CompanyComparative Balance Sheet20182017AssetsCashAccounts RecelvablePrepaid InsuranceInventoryLandPlant Assets$ 47,50021,5002,50048,00020.000230,000(85,500)$284.000S 24,30026,0001,80045,50010,000190,000(71,100)$226,500Accumulated DepreciationTotal AssetsLlabilities and EquityLiabilities:Accounts PayableSalaries PayableNotes Payable$ 17,2001,90085,000$ 19,0001,50075,00095,500Total Liabiltes104.100EquityCommon StockRetained EarningsTotal EquityTotal Liabilities and Equity115.00064.90070,00061,000179.90000000$284.000$226,500

Cash flows statement is one of the financial statement which shows about all the cash inflows and…

Saturn Company Income Statement for ycar cnded Dec. 31, 2018 Sales Revenue Cost of Goods Sold $238,000 153,000 Gross Profit Operating Expenses: Depreciation Expense Insurance Expense Salaries Expense Other Operating Expenses Total Operating Expenses Operating Income Other Revenue and (Expenses): 85,000 $14,400 12,000 42,600 11,100 80,100 4,900 Gain on Sale of Land Interest Expense Total Other Revenue and Expenses 4,800 (3.500) Income Before Income Tax Income Tax Expense Net Income 1,300 6,200 1,860 $ 4,340 Additional Information: 1. Saturn Company sold land with an original cost of $10.000, for $14,800 cash. 2. A new parcel of land was purchased for $20,000, in exchange for a note payable. 3. Plant assets were purchased for $40,0000 cash. 4. Saturn declared and paid a $440 cash dividend to sharcholders. 5. Saturn issued common stock in exchange for S45,000 cash. Prepare a cash flow statement for Saturn Company using the indirect method for the year ended 31 December 2018

Saturn Company Income Statement for ycar cnded Dec. 31, 2018 Sales Revenue Cost of Goods Sold $238,000 153,000 Gross Profit Operating Expenses: Depreciation Expense Insurance Expense Salaries Expense Other Operating Expenses Total Operating Expenses Operating Income Other Revenue and (Expenses): 85,000 $14,400 12,000 42,600 11,100 80,100 4,900 Gain on Sale of Land Interest Expense Total Other Revenue and Expenses 4,800 (3.500) Income Before Income Tax Income Tax Expense Net Income 1,300 6,200 1,860 $ 4,340 Additional Information: 1. Saturn Company sold land with an original cost of $10.000, for $14,800 cash. 2. A new parcel of land was purchased for $20,000, in exchange for a note payable. 3. Plant assets were purchased for $40,0000 cash. 4. Saturn declared and paid a $440 cash dividend to sharcholders. 5. Saturn issued common stock in exchange for S45,000 cash. Prepare a cash flow statement for Saturn Company using the indirect method for the year ended 31 December 2018

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 12.10E

See similar textbooks

Similar questions

Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Asset turnover
Recording Various Liabilities Glenview Hardware had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $30,000. ( Note: Assume a periodic inventory system.) b. Year-end wages of $10,000 were incurred, but not paid. Related federal income taxes of $1,200, Social Security of $620 (employee portion), and Medicare taxes of $145 were with-held from employees. c. Year-end estimated income taxes payable, but unpaid, for the year were $42,850. d. Sold merchandise on account for $1,262, including state sales taxes of S48. ( Note: Assume a periodic inventory system.) e. Employers share of Social Security and Medicare taxes for the period were $620 and $145, respectively. f. Borrowed cash under a 90-day, 9%, $25,000 note. Required: Prepare the entry to record each of these transactions (treat each transaction independently).
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?