Income Statement For the Period Ended December 31, 2019 Sales $636,000 Cost of goods sold 240,000...

Income Statement

For the Period Ended December 31, 2019

Sales	$636,000
Cost of goods sold	240,000
Gross Profit	396,000
Office expenses	242,000
Depreciation Expense	9,000
Income from Operations	145,000
Interest expense	0
Income before income tax	145,000
Income tax expense	120,000
Net Income	$25,000

Comparative Balance Sheets

December 31, 20XX

	2019	2018
Assets
Cash and cash equivalents	84,000	48,700
Accounts Receivable	53,600	50,000
Inventory	39,600	39,000
Prepaid expenses	5,500	15,000
Equipment	206,000	200,000
Accumulated Depreciation - Equipment	(126,700)	(117,700)
Total assets	$262,000	$235,000
Liabilities
Accounts Payable	$48,000	$49,000
Accrued Liabilities	44,000	42,000
Stockholders' Equity
Common Stock	10,000	9,000
Retained Earnings	160,000	135,000
Total Liabilities & S/H Equity	$262,000	$235,000

Additional information:

No equipment was sold throughout the year, so the change in accumulated depreciation is a result of depreciation expense for the year.
Stock was issued for cash.
Equipment was purchased with cash.

Required:

Prepare a FULL statement of cash flows for the year 2019, including the Operating, Investing and Financing sections, assuming that Ramos Company uses the INDIRECT method.

Solutions

Expert Solution

Answer-

RAMOS COMPANY
STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)
FOR THE YEAR ENDED DECEMBER 31,2019

Particulars		Amount
		$
Cash flow from operating activities
Net income		25000
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects

Depreciation		9000

Change in operating assets & liabilities

Increase in Accounts receivable		-3600
Increase in inventory		-600
Decrease in prepaid expenses		9500
Decrease in accounts payable		-1000

Increase in accrued liabilities		2000
Net cash flow from operating activities (a)		40300

Cash Flow from Investing activities

New Equipment purchased		-6000

Net cash Flow from Investing activities (b)		-6000

Cash Flow from Financing activities

Common stock issued		1000

Net cash Flow from Financing activities (c)		1000

Net Change in cash c=a+b+c		35300
Beginning cash balance		48700

Closing cash balance		84000

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Income Statement For Year Ended December 31, 2018 Sales revenue $97,200 Expenses Cost of goods sold...

Income Statement For Year Ended December 31, 2018 Sales revenue $97,200 Expenses Cost of goods sold 42,000 Depreciation expense 12,000 Salaries expense 18,000 Rent expense 9,000 Insurance expense 3,800 Interest expense 3,600 Utilities expense 2,800 Net income $6,000 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2018 2017 Accounts receivable $ 5,600 $ 5,800 Inventory 1,980 1,540 Accounts payable 4,400 4,600 Salaries payable 880 700 Utilities payable 220 160 Prepaid insurance 260 280 Prepaid rent 220 180 Prepare the...

Income Statement For the Year Ended December 31, 2014 Revenue: Sales $ 792,845 Cost of Goods...

Income Statement For the Year Ended December 31, 2014 Revenue: Sales $ 792,845 Cost of Goods Sold $ 275,000 Gross Profit $ 517,845 Operating Expenses: Depreciation Expense $ 35,159 Insurance Expense $ 82,000 Office Expense $ 21,700 Advertising Expense $ 8,400 Utilities Expense $ 31,000 Wage Expense $ 80,350 Bad Debt Expense $ 25,000 Pension Expense $ 40,000 Income from Operations: $ 194,236 Other Revenue: Rent Revenue $ 12,000 Interest Revenue $ 19,561 Other Expenses: Unrealized Holding G/L $ (8,000)...

Income statement for the year ended December 31, 2018 Revenues 1,328 Cost of goods sold 587...

Income statement for the year ended December 31, 2018 Revenues 1,328 Cost of goods sold 587 Rent expenses 152 Wages expenses 136 Insurance expenses 53 Other SG&A (includes depreciation expenses) 198 Interest expenses 30 Gain on sale of asset (5) 1,151 Income before tax 177 Tax 62 Net income 115 Cash flow provided by operating activities (indirect method), for the year ended December 31, 2018 Net income 115 Depreciation 32 Gain on sale of asset (5) 142 Increases/decreases in Accounts...

ABC Company’s income statement for the year ended December 31, 2018: Sales $600,000 Cost of goods...

ABC Company’s income statement for the year ended December 31, 2018: Sales $600,000 Cost of goods sold ($375,000) Rent ($37,500) Salaries ($37,500) Interest ($7,500) Depreciation ($22,500) Gain on sale of assets $7,500 Net income $127,500 The balance sheets as of December 31, 2017 and 2018 were: Description 2018 2017 Cash $112,500 $24,000 Accounts Receivable $45,000 $39,000 Inventory $60,000 $57,000 Prepaid rent $15,000 $18,000 Property, Plant & Equipment $300,000 $285,000 Less: Accumulated Depreciation ($97,500) ($82,500) Total Assets $435,000 $340,500 Accounts Payable...

SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 2,321,000 Cost of goods...

SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 2,321,000 Cost of goods sold 1,137,290 Gross profit 1,183,710 Operating expenses Salaries expense $ 317,977 Depreciation expense 55,704 Rent expense 62,667 Amortization expenses—Patents 6,963 Utilities expense 25,531 468,842 714,868 Gain on sale of equipment 9,284 Net income $ 724,152 Changes in current asset and current liability accounts for the year that relate to operations follow. Accounts receivable $ 40,500 increase Accounts payable $ 13,350 decrease Inventory 31,675...

Income Statement Year Ended July 31, 2018 Net Sales Revenue $28,000 Cost of Goods Sold 10,800...

Income Statement Year Ended July 31, 2018 Net Sales Revenue $28,000 Cost of Goods Sold 10,800 Gross Profit 17,200 Operating Expenses: Selling Expenses $690 Administrative Expenses 1,550 Total Operating Expenses 2,240 Operating Income 14,960 Other Income and (Expenses): Interest Expense ? Total Other Income and (Expenses) ? Net Income before Income Tax Expense ? Income Tax Expense 2,810 Net Income $ ? The income statement for UtahUtah Communications follows. Assume UtahUtah Communications signed a 3-month, 9 %9%, $ 60 comma...

_______________________________________________________________________ JETER CORPORATION Income Statement For the Year Ended December 31, 2019 Sales.......................................................................................... $ 3,300,000 Co

_______________________________________________________________________ JETER CORPORATION Income Statement For the Year Ended December 31, 2019 Sales.......................................................................................... $ 3,300,000 Cost of goods sold.................................................................... 1,950,000 Gross profits....................................................................... 1,350,000 Selling and administrative expense.......................................... 650,000 Depreciation expense................................................................ 230,000 Operating income................................................................ 470,000 Interest expense........................................................................ 80,000 Earnings before taxes......................................................... 390,000 Taxes......................................................................................... 140,000 Earnings after taxes............................................................ 250,000 Preferred stock dividends............................................................ 10,000 Net Income Available to Common Shareholders..................... $ 240,000 Shares outstanding.................................................................. 150,000 Current Stock Price................................................................... $ 16.00 _______________________________________________________________________ _______________________________________________________________________...

Income Statement Covid Company for the year ended December 31, 2019 shows sales revenue $6,000,000 and...

Income Statement Covid Company for the year ended December 31, 2019 shows sales revenue $6,000,000 and COGS $3,800,000 . Accounts receivable increased $250,000 during the year, and inventory decreased $300,000. Accounts payable to suppliers of merchandise decreased $450,000 during the year. Accrued expenses payable decreased $90,000 during the year. Operating expenses include depreciation expense of $1,600,000. Depreciation expense was $100,000. Prepare Statement of Cash Flow Operating Activities Section for Covid Company.

Income Statement for the year ended December 31, 2020 (millions of $) Revenue (sales) $773 Cost...

Income Statement for the year ended December 31, 2020 (millions of $) Revenue (sales) $773 Cost of goods sold 595 Selling, general, and administrative expenses* 130 Loss on disposal of plant** 6 Interest expense 12 Income tax expense 10 Net income $ 20 *Includes depreciation expense of $30 million, insurance expense of $8 million, bad debt expense of $6 million, and salaries expense of $86 million. ** During 2020, the company purchased two pieces of equipment costing a total...

Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $15,300; cost of goods sold, $6,200

Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $15,300; cost of goods sold, $6,200; selling expenses, $1,300; general and administrative expenses, $800; interest revenue, $40; interest expense, $180. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate...

Subjects