The financial statements of Bait and Tackle are presented below. Prepare a statement of cash flows using both the direct and indirect method. Additional information:Operating expenses are composed of: Depreciation $12,000; Salaries $50,000; Loss on Sale of Equipment $9,000; other operating expenses $64,000.Other operating expenses are cash expenses.Equipment was purchased during the year for $135,000 cash.Equipment was sold for cash during the year. The original cost of the equipment was $60,000, and the accumulated depreciation was $45,000.Dividends were declared and paid during the year. Bait and TackleBalance SheetAs at December 3120172016$24,00050,00088.000Cash$39,000Accounts receivable64,000InventoryEquipmentAccumulated depreciationTotal assets58,000325,000250,000(92.000)$394.000(125,000)$287,000Accounts payableIncome taxes payableBank loan payable$32,000$40,00010,00011,00020,000Common shares60,00050,000Retained earningsTotal liabilities and shareholders` equity272.000$394.000186.000$287.000 Bait and TackleIncome StatementFor the Year Ended December 31, 2017SalesCost of goods soldGross profitOperating expensesOperating incomeInterest expenseIncome before taxesIncome taxesNet income$635,000320.000315,000135.000180,0001.000179,00043.000$136.000

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Answered: The financial statements of Bait and…

The financial statements of Bait and Tackle are presented below. Prepare a statement of cash flows using both the direct and indirect method.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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