Question
In: Accounting
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year...
The following income statement and additional year-end
information is provided.
| SONAD COMPANY Income Statement For Year Ended December 31 |
||||||
| Sales | $ | 1,513,000 | ||||
| Cost of goods sold | 741,370 | |||||
| Gross profit | 771,630 | |||||
| Operating expenses | ||||||
| Salaries expense | $ | 207,281 | ||||
| Depreciation expense | 36,312 | |||||
| Rent expense | 40,851 | |||||
| Amortization expenses—Patents | 4,539 | |||||
| Utilities expense | 16,643 | 305,626 | ||||
| 466,004 | ||||||
| Gain on sale of equipment | 6,052 | |||||
| Net income | $ | 472,056 | ||||
| Accounts receivable | $ | 18,700 | increase | Accounts payable | $ | 12,525 | decrease | |||
| Inventory | 34,225 | increase | Salaries payable | 1,250 | decrease | |||||
Prepare the operating activities section of the statement of cash
flows using the indirect method. (Amounts to be
deducted should be indicated with a minus sign.)
Solutions
Expert Solution
Solution
| SONAD COMPANY | ||
| Cash Flow Statement | ||
| For year ended 31st December | ||
| A. Cash Flows from Operating Activity | ||
| Net Income | $ 472,056.00 | |
| Adjustments to reconcile net income to net cash provided by operating activities | ||
| Income statement items not affecting cash | ||
| Depreciation expense | $ 36,312.00 | |
| Patent amortization expense | $ 4,539.00 | |
| Gain on sale of equipment | $ (6,052.00) | |
| Changes in current operating assets and liabilities | ||
| Increase in Accounts receivables | $ (18,700.00) | |
| Increase in Inventory | $ (34,225.00) | |
| Decrease in Accounts Payable | $ (12,525.00) | |
| Decrease In salaries payable | $ (1,250.00) | |
| Net cash flow from Operating activities | $ 440,155.00 | |
ekkarill92 answered 1 year agoRelated Solutions
The income statement, balance sheets, and additional information for Communication Accessories are provided. &
The income statement, balance sheets, and additional information
for Communication Accessories are provided.
Communication Accessories
Income Statement
For the Year Ended December 31, 2021
Revenues
$2,800,000
Gain on sale of land
4,000
Total revenues
2,804,000
Expenses:
Cost of goods sold
1,900,000
Operating expenses
575,000
Depreciation expense
38,000
Interest expense
16,000
Income tax expense
63,000
Total expenses
2,592,000
Net Income
$212,000
Communication Accessories
Balance Sheets
December 31
Assets
2021
2020
Current Assets:
Cash
$182,000...
Use the income statement and additional information provided below and the appropriate software to prepare the...
Use the income statement and additional information provided
below and the appropriate software to prepare the annual budgeting
income statement for the next three year. You need to save and
upload your budget to Moodle with the final submission for this
assessment.
Additional information
?? Annual sales are expected to increase by 10% each
year
?? Expected average gross profit margin is
30%
?? Advertising costs are expected to increase by $800
each year
?? Depreciation charges are the same...
The income statement, balance sheets, and additional information for Apple Inc are provided. Apple Inc. Income...
The income statement, balance sheets, and additional information
for Apple Inc are provided.
Apple Inc.
Income Statement
For the Year Ended December 31, 2018
Revenues
$2,800,000
Gain on sale of land
4,000
Total revenues
2,804,000
Expenses:
Cost of goods sold
1,900,000
Operating expenses
575,000
Depreciation expense
38,000
Interest expense
16,000
Income tax expense
63,000
Total expenses
2,592,000
Net Income
$212,000
Apple Inc. Balance
Sheets
December 31
Assets
2018
2017
Current Assets:
Cash
$182,000
$187,000
Accounts receivable
83,000
95,000
Inventory
121,000...
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. ...
The income statement, balance sheets, and additional information
for Great Adventures, Inc., are provided below.
GREAT ADVENTURES, INC.
Income Statement
For the Year Ended December 31, 2020
Revenues:
Service revenue (clinic, racing,
TEAM)
$ 547,000
Sales revenue (MU watches)
122,000
Total revenues
$ 669,000
Expenses:
Cost of
goods sold (watches)
72,000
Operating
expenses
304,476
Depreciation
expense
52,000
Interest
expense
29,924
Income
tax expense
58,200
Total
expenses
516,600
Net income
$ 152,400...
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. ...
The income statement, balance sheets, and additional information
for Great Adventures, Inc., are provided below.
GREAT ADVENTURES, INC.
Income Statement
For the Year Ended December 31, 2020
Revenues:
Service revenue (clinic, racing,
TEAM)
$ 547,000
Sales revenue (MU watches)
122,000
Total revenues
$ 669,000
Expenses:
Cost of
goods sold (watches)
72,000
Operating
expenses
304,476
Depreciation
expense
52,000
Interest
expense
29,924
Income
tax expense
58,200
Total
expenses
516,600
Net income
$ 152,400...
The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL...
The income statement, balance sheets, and additional information
for Virtual Gaming Systems are provided.
VIRTUAL GAMING SYSTEMS
Income Statement
For the Year Ended December 31, 2018
Net sales
$
2,540,000
Gain on sale of
land
4,000
Total
revenues
2,544,000
Expenses:
Cost of goods sold
$
1,620,000
Operating expenses
609,000
Depreciation expense
27,000
Interest expense
28,000
Income tax expense
74,000
Total
expenses
2,358,000
Net income
$
186,000
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2018
2017
Assets
Current assets:...
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. ...
The income statement, balance sheets, and additional information
for Great Adventures, Inc., are provided below.
GREAT ADVENTURES, INC.
Income Statement
For the Year Ended December 31, 2020
Revenues:
Service revenue (clinic, racing,
TEAM)
$ 555,000
Sales revenue (MU watches)
130,000
Total revenues
$
685,000
Expenses:
Cost of goods
sold (watches)
76,000
Operating
expenses
304,876
Depreciation
expense
56,000
Interest
expense
30,324
Income tax
expense
60,600
Total
expenses
527,800
Net income
$ 157,200...
The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL...
The income statement, balance sheets, and additional information
for Virtual Gaming Systems are provided.
VIRTUAL GAMING SYSTEMS
Income Statement
For the Year Ended December 31, 2018
Net sales
$
2,600,000
Gain on sale of
land
7,000
Total
revenues
2,607,000
Expenses:
Cost of goods sold
$
1,650,000
Operating expenses
615,000
Depreciation expense
33,000
Interest expense
34,000
Income tax expense
80,000
Total
expenses
2,412,000
Net income
$
195,000
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2018
2017
Assets
Current assets:
Cash...
The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL...
The income statement, balance sheets, and additional information
for Virtual Gaming Systems are provided.
VIRTUAL GAMING SYSTEMS
Income Statement
For the Year Ended December 31, 2018
Net
sales
$
2,570,000
Gain
on sale of land
5,500
Total
revenues
2,575,500
Expenses:
Cost of goods sold
$
1,635,000
Operating expenses
612,000
Depreciation expense
30,000
Interest expense
31,000
Income tax expense
77,000
Total
expenses
2,385,000
Net
income
$
190,500
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2018
2017
Assets
Current assets:...
The income statement, balance sheets, and additional information for Communication Accessories are provided. COMMUNICATION ACCESSORIES...
The income statement, balance sheets, and additional information
for Communication Accessories are provided.
COMMUNICATION ACCESSORIES
Income Statement
For the Year Ended December 31, 2021
Revenues
$
2,800,000
Gain on sale of land
4,000
Total revenues
2,804,000
Expenses:
Cost of goods sold
$
1,900,000
Operating expenses
575,000
Depreciation expense
38,000
Interest expense
16,000
Income tax expense
63,000
Total expenses
2,592,000
Net income
$
212,000
COMMUNICATION ACCESSORIES
Balance Sheets
December 31
2021
2020
Assets
Current assets:
Cash
$
182,000
$...
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