income statement Sales 205,000 cost of goods sold -97,000 salaries expense -24,000 depreciation expense -16,000...

income statement
Sales	205,000
cost of goods sold	-97,000
salaries expense	-24,000
depreciation expense	-16,000
interest expense	-2,400
loss on equipment disposal	-2,500
net income	63,100

Statement of Retained Earnings
Beginning Balance - Retained Earnings	6,000
Plus - Net Income	63,100
Less - Dividends	(41,500)
Ending Balance - Retained Earnings	27,600

Balance sheets

	2018	2019	change
Assets:
Cash	13,000	64,600	51,600
Accounts Receivable	25,000	19,000	(6,000)
Inventory	19,000	13,000	(6,000)
prepaid expenses	0	0	0
Equipment	60,000	41,000	(19,000)
Accum. Depr - Equipment	(22,000)	(26,000)	(4,000)
total assets	95,000	111,600

Liabilities:
Accounts Payable	11,000	9,000	(2,000)
accrued Liabilities	13,000	10,000	(3,000)
Bonds Payable	40,000	40,000	0
total liabilities	64,000	59,000

Shareholders’ Equity:
Common Stock	25,000	25,000	0
Retained Earnings	6,000	27,600	21,600
total equity	31,000	52,600
total liabilities and shareholder equity	95,000	111,600

Based on the above information, prepare the cash flow statement using the indirect method.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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