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Prepare Statement of Cash Flows, Direct Method. Shark Company provided the following balance sheet and income statement for the current year. Prepare the operating activities section of the cash flow statement using the direct method. Assume that accrued expenses relate to selling general and administrative expenses
Shark Company Balance Sheet At December 31 |
||||
Assets | Ending | Beginning | ||
Current Assets | ||||
Cash | $ 1,000 | $ 5,000 | ||
Accounts Receivable - net | 5,500 | 3,000 | ||
Merchandise Inventory | 4,000 | 1,800 | ||
Total Current Assets | $10,500 | $ 9,800 | ||
Noncurrent Assets | ||||
Investments in Bonds | $30,000 | $10,000 | ||
Property, Plant, and Equipment - net | $50,000 | $60,000 | ||
Total Noncurrent Assets | $80,000 | $70,000 | ||
Total Assets | $90,500 | $79,800 | ||
Liabilities | ||||
Current Liabilities |
Accounts Payable | $ 3,200 | $ 4,400 |
Accrued Expenses | 6,700 | 6,550 |
Income Taxes Payable | 1,500 | 2,450 |
Total Current Liabilities | $11,400 | $13,400 |
Noncurrent Liabilities | ||
Notes Payable | $35,000 | $28,000 |
Total Noncurrent Liabilities | $35,000 | $28,000 |
Total Liabilities | $46,400 | $41,400 |
Shareholders’ Equity | ||
Common Stock, $1 par value | $10,000 | $ 9,000 |
Additional Paid-in Capital in Excess of Par - Common | 15,334 | 12,000 |
18,766 | 17,400 | |
Total Shareholders’ Equity | $44,100 | $38,400 |
Total Liabilities and Shareholders’ Equity | $90,500 | $79,800 |
Shark Company Income Statement For the Year Ended December 31 |
|
Sales | $56,000 |
Cost of Goods Sold | 33,600 |
Gross Profit | $22,400 |
Selling. General, and Administrative Expenses | $11,600 |
6,000 | |
Total Operating Expenses | $ 17,600 |
Operating Income | $ 4,800 |
Interest Expense | $(2,100) |
Income before Tax | $ 2,700 |
Income Tax Expense | (1,334) |
Net Income | $ 1,366 |
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Chapter 22 Solutions
Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
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