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Use the following information to prepare a Statement of Cash Flows for Diamond Clothes, Inc. Diamond Clothes, Inc. Income Statement (dollars in millions)

Use the following information to prepare a Statement of Cash Flows for Diamond Clothes, Inc. Diamond Clothes, Inc. Income Statement (dollars in millions)

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter16: Statement Of Cash Flows: Another Look
Section: Chapter Questions
Problem 4P
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Use the following information to prepare a Statement of Cash Flows for Diamond Clothes, Inc. Diamond Clothes, Inc. Income Statement (dollars in millions) Sales $3,638 Cost of Goods Sold 2469 Gross Margin 1169 Selling and Administrative 848 Expenses Depreciation Expense 93 Net Operating Income 228 Gain on Sales of Store 3 Income taxes 91 Net Income $140 Balance Sheet Assets Ending Bal. Beg. Bal. Current Assets: Cash and Cash Equivalents $91 $29 Accounts Receivable 637 654 Inventory 586 537 Total Current Assets 1,314 1,220 Property, plant, & equipment 1,517 1,394 less: accum depreciation 654 561 Net Property, plant, & equipment 863 833 Total Assets 2,177 2,053 Liabilities and Stockholder's Equity Current Liabilities: Accounts Payable $264 $220 Other expenses payable 193 190 Income taxes payable 75 71 Total Current Liabilities 532 481 Bonds payable 479 520 Total Liabilities 1,011 1,001 Stockholder's equity: Common Stock 157 155 Retained Earnings 1,009 1,166 897 Total Stockholder's equity 1,052 Total Liabilities and Stockholder's Equity $2,177 $2,053 Additional Information: 1. The company sold a store that had an original cost of $15 million and accumulated depreciation of $10 million for $8 million cash. The gain on the sale was $3 million. 2. The company did not issue any new bonds during the year. 3. The company did not repurchase any of its own stock during the year. 4. The company paid a cash dividend during the year.
Transcribed Image Text:Use the following information to prepare a Statement of Cash Flows for Diamond Clothes, Inc. Diamond Clothes, Inc. Income Statement (dollars in millions) Sales $3,638 Cost of Goods Sold 2469 Gross Margin 1169 Selling and Administrative 848 Expenses Depreciation Expense 93 Net Operating Income 228 Gain on Sales of Store 3 Income taxes 91 Net Income $140 Balance Sheet Assets Ending Bal. Beg. Bal. Current Assets: Cash and Cash Equivalents $91 $29 Accounts Receivable 637 654 Inventory 586 537 Total Current Assets 1,314 1,220 Property, plant, & equipment 1,517 1,394 less: accum depreciation 654 561 Net Property, plant, & equipment 863 833 Total Assets 2,177 2,053 Liabilities and Stockholder's Equity Current Liabilities: Accounts Payable $264 $220 Other expenses payable 193 190 Income taxes payable 75 71 Total Current Liabilities 532 481 Bonds payable 479 520 Total Liabilities 1,011 1,001 Stockholder's equity: Common Stock 157 155 Retained Earnings 1,009 1,166 897 Total Stockholder's equity 1,052 Total Liabilities and Stockholder's Equity $2,177 $2,053 Additional Information: 1. The company sold a store that had an original cost of $15 million and accumulated depreciation of $10 million for $8 million cash. The gain on the sale was $3 million. 2. The company did not issue any new bonds during the year. 3. The company did not repurchase any of its own stock during the year. 4. The company paid a cash dividend during the year.
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