($ in millions) 2018 $ 612 348 %24
Q: D6) The 2021 standard deduction is $12,600 and deductions for state and local taxes are limited to…
A: Solution:- Given, Standard deduction of 2021 = $12,600 Deductions for state and local taxes are…
Q: $135,000 Federal income tax w 250,רר Social security tax wi $212,250 Medicare tax withhelo ployment…
A: Journalise the monthly payroll for November,based on the following data : Description Debit…
Q: What interest was earned if P500 500 is invested at 10 1/2% from October 20, 2019 to March 20, 2020?…
A: Solution: Amount invested = P500,500 Interest rate = 10.5% Period invested = Oct 20, 2019 to March…
Q: > BTCF = $150,000; Depletion= $5,000; loan interest = $10,000; loan payment = $16,275; tax rate =…
A: BTCF – BTCF stands for before tax cash flow. This is the value of net income after deducting all the…
Q: What is the 'UNLEVERED PROFIT AFTER TAX' in the year 2019? Rs. 0.41 million Rs. 0.51 million Rs.…
A: Given, For 2019 Profit before interest and taxes = Rs 0.76 Mn Corporate tax = Rs 0.25 Mn
Q: 2018 2019 Revenues $ 995 $1,073 800 840 Expenses Pretax accounting income (income statement) Taxable…
A: Solution 2: Tax schedule showing reconciliation between pre tax financial income, taxable income,…
Q: e year: 30,000 withholding tax, hilHealth and P40,000
A: Gross income refers to the total sum value of money gained by an entoty which is su
Q: Consider the following data for 2019 from an after tax cash flow analysis.What is the after tax cash…
A: After tax cash flow: It can be defined as the cash generated by a business from its main operations…
Q: 10. Sheridan Corp. prepared the following reconciliation of income per books with income per tax…
A: In order to determine the current provision for income taxes, the income tax rate is required to be…
Q: ar pretax financial income for 2018 was $720,000. Included in it was $40,000 in interest income on…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The following information applies to the questions displayed below.] Arndt, Inc. reported the…
A: please like the answer your response matters Requirement-1: a. Casualty insurance expense…
Q: prts the following transactions for the 2020 tax year. The trustee accum come from a business…
A: The taxable income refers to the sum value of income gained by an entity that is subject to the…
Q: Required information [The following information applies to the questions displayed below.] Arndt,…
A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…
Q: The DeVille Company reported pretax accounting income on Its income statement as follows: 2021 2022…
A: This question is based on the IAS 12 - Income taxes. As per IAS 12, There are two types of…
Q: 10 Antignolo Enterprises, Inc. (a corporation) reported the following information for 2020. Don't…
A: Net income is the total income generated during the year. It is calculated by deducting all…
Q: From the information given below Calculate the amount to be maintained as Legal Reserve for the year…
A: In general, reserve accounting refers to the company's accumulated profits throughout the time that…
Q: * 00 Oakdale Fashions, Inc. had $245,000 in 2018 taxable income. Using the tax schedule in Table 23…
A: Tax till $100,000 $22,250 $100,001 - $245,000 $145,000 x 39% = $56,550 Income Taxes $78,800
Q: 26. Kayo Na Company's income statement for the year ended December 31, 2019 shows pretax income of…
A: Solution: Taxable income = Pretax income - Excess of rent revenue as per books over tax - Excess of…
Q: Harper Company began operations at the beginning of 2021. The following information pertains to this…
A: There are two types of difference which occur while calculating deferred tax asset/liability. One is…
Q: E18-11 Multiple Tax Rates For the year ended December 31, 2019, Nelson Co.’s income statement showed…
A: Deferred Tax Asset / (Liability) : When taxes payable as per Federal Tax laws is higher than tax…
Q: See attached picture A. Compute taxable income for 2017 B. Compute pretax financial income for 2017
A: Income tax expense: The expenses which are related to the taxable income of the individuals and…
Q: The Snella Company reports 2023 Pre-tax Net Income of $10,000. The following items exist:
A: Income tax is levied on income. The composition of total tax revenue earned from this taxation…
Q: accounting income (income sta eincome (tax return) : 25% s each year include $30 million fro e…
A: Taxable income refers to the sum value of money gained by an entity on which the authorized…
Q: soru At the end of 2019, The Business with 20% Corporate tax rate has Expenses: TL3.150.000 and…
A: The question is based on the concept of Financial Accounting.
Q: If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is…
A: The Equity after tax cash flow of the investor is that income after deducting all expenses and tax.
Q: During 2020, Coronado Inc. had sales revenue $1368000, gross profit $730300, operating expenses…
A: answer with explanation areas follows:
Q: The end-of-year pretax financial income for UMPI in 2018 was $720,000. It included $40,000 in…
A: Net income is the amount earned by an individual or corporation after subtracting costs, deductions,…
Q: 1. How much is the tax due on a taxable income of P250,000? а. 0 b. 1,250 с. 50,000 d. 30,000
A: Taxable income states the base upon which the system of income tax imposes or put the tax on citizen…
Q: Brandon Inc. reported the following pre-tax accounting incomes (losses):…
A: The correct answer for the above mentioned question is given in the following steps for you…
Q: Howe Corporation has income before income taxes of $1,064,000 in 2017. The current provision for…
A: Income tax expense is payable on amount of income earned over the period of time.
Q: BE13.3 (LO 1) Takemoto Corporation borrowed $60,000 on November 1, 2020, by signing a $61,350,…
A: Notes payable are the liability accounts that can be for short term or long term which includes the…
Q: Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): 2018 2019 Revenues $ 995…
A: Solution 4: Tax schedule showing reconciliation between pre tax financial income, taxable income,…
Q: ow much is the income tax payable assuming the taxable year is 2021? a. 330,000
A: Income Tax : It is the amount of income which levied by the Government of the state on the income…
Q: 11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before…
A: Net income = $57000 EBIT = $160,000 Tax rate = 40%
Q: Received rent from ruck in 2019 $87,000 Municipal bond income $111,000 Depreciation for tax purposes…
A: Any payment individual receives or company that is used to determine tax liability is considered…
Q: E19.4 (LO 1, 2) (Three Differences, Compute Taxable Income, Entry for Taxes) Havaci SpA reports…
A: The pretax financial income number indicates revenue less costs, however, it is constructed in such…
Q: Verse Company's income statement for the year ended December 31, 2020 shows pretax income of…
A: Permanent Difference = Interest on governmentbonds (exempt from tax) = P50,000 Temporary Difference…
Q: If the tax rate is 21%, determine the Free Cash Flow for 2020 2019 2020 2019 2020 書 Net sales Cost…
A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…
Q: E19.2 (LO 1) (Two Differences, No Beginning Deferred Taxes, Tracked through 2 Years) The following…
A: Introduction:- The base on which an income tax system levies tax is referred to as taxable income.…
Q: Using accrual basis, how much is the reportable gross income in 2021? A. 8,000,000 B. 9,000,000 C.…
A: Accrual basis of accounting is that basis under which all revenues earned during the period and all…
Q: In 2019 Quick Burger had a capital expenditure of $3055. A. calculate quick burgers free cash flow…
A: Step 1: Free Cash flow of a company is the cash flow from operating activities minus the capital…
Q: E19.3 (LO 1, 2) (One Temporary Difference, Future Taxable Amounts, One Rate, Beginning Deferred…
A: Temporary Difference: It is the difference between tax base and carrying amount of an asset or…
Q: The following table pertains to C. J. Company: Year Taxable Income Tax Rate 2020 ($1,000,000) 25%…
A: The question is based on the concept to set off of loss with forward year profit for calculation of…
Q: 6 tmpioyees during 20x1 totaled P750,000.- How much is the retirement benefits expense in 20x1? a.…
A: A retirement benefit plan involves annual contributions form the employer to the retirement fund.…
Q: 11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before…
A: Net income (EAT) = $57000 EBIT = $150,000 Tax rate = 40%
Q: How much is the total income tax expense recorded for the year ended December 31, 2019? a. P246,000…
A: Income tax expense is calculated on taxable income
Q: 34. Thinker Corporation's income statement for the year ended December 31, 2022, shows pretax income…
A: Introduction: Income tax payable is the amount due on the taxable income of the business earned by…
Q: 14. In prior years, the taxpayer's adjusted AMI and Adjusted AMT $25,000 $15,000 Minimum Tax Credit…
A: The adjusted minimum tax paid in previous year is allowed as minimum tax credit in future so the…
Q: What amount was recognized as actuarial gain on PBO during the year? 100 000 200 000 240 000 0…
A: Introduction As per relevant IAS, Employee benefit if there is any loss or gain in defined benefit…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)