In: Accounting
The income statement, balance sheet, and additional information for Virtual Gaming Systems are provided. |
VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2015 |
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Net sales | $ | 2,580,000 | |
Gain on sale of land | 6,000 | ||
Total revenues | 2,586,000 | ||
Expenses: | |||
Cost of goods sold | $ 1,640,000 | ||
Operating expenses | 613,000 | ||
Depreciation expense | 31,000 | ||
Interest expense | 32,000 | ||
Income tax expense | 78,000 | ||
Total expenses | 2,394,000 | ||
Net income | $ | 192,000 | |
VIRTUAL GAMING SYSTEMS Balance Sheet December 31 |
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2015 | 2014 | |||
Assets | ||||
Current assets: | ||||
Cash | $ | 355,520 | $ | 291,840 |
Accounts receivable | 66,200 | 82,000 | ||
Inventory | 157,000 | 143,000 | ||
Prepaid rent | 4,480 | 6,960 | ||
Long-term assets: | ||||
Investments | 213,000 | 120,000 | ||
Land | 214,000 | 268,000 | ||
Equipment | 246,000 | 218,000 | ||
Accumulated depreciation | (140,000) | (109,000) | ||
Total assets | $ | 1,116,200 | $ | 1,020,800 |
Liabilities and Stockholders' Equity | ||||
Current liabilities: | ||||
Accounts payable | $ | 34,000 | $ | 96,000 |
Interest payable | 5,000 | 3,800 | ||
Income tax payable | 24,200 | 28,000 | ||
Long-term liabilities: | ||||
Notes payable | 261,000 | 233,000 | ||
Stockholders' equity: | ||||
Common stock | 438,000 | 380,000 | ||
Retained earnings | 354,000 | 280,000 | ||
Total liabilities and stockholders’ equity | $ | 1,116,200 | $ | 1,020,800 |
Additional Information for 2015: | |
1. | Purchase additional investment in stocks for $93,000. |
2. | Sell land costing $54,000 for $60,000, resulting in a $6,000 gain on sale of land. |
3. |
Purchase $28,000 in equipment by borrowing $28,000 with a note payable due in three years. No cash is exchanged in the transaction. |
4. | Declare and pay a cash dividend of $118,000. |
5. | Issue common stock for $58,000. |
Required: |
Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) |
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Let me know in case you face any issue. Ingore the order of commas in amount. Athough, format of answer is not provided but I have used the best format.: