Adiusted Trial Balance 2015 Adiusted Trial Balance 2014 DR CR DR Cr Cash A/R All

Question

Adiusted Trial Balance 2015 Adiusted Trial Balance 2014 DR CR DR Cr Cash A/R Allowance for Doubtful accounts Investment Equip AD-Equip Accounts payable Income tax payable Common Stock 157,000 170,000 78,000 185,000 30,000 30,000 52,000 279,000 74,000 240,000 106,000 109,000 27,000 160,000 89,000 121,000 29,000 160,000 Retained Earnings Sales COGS Salaries Expense Depreciation expense Dividends Loss on Sale Tax expense Totals 148,000 600,000 85,000 580,000 350,000 93,000 17,000 30,000 5,000 27,000 1,180,000 340,000 120,000 8,000 20,000 29,000 1,094,000 1,180,000 1,094,000 Sold investments @ a loss of $5,000; investments are long term WACSO 80,000 shares weighted average shares outstanding Prepare the current year financial statements Income statement, Statement of Retained earnings, Balance sheet and Statement of Cash Flows

Explanation / Answer

Statement of Cash Flow From Direct method For Year 2015 Amount in $ Cash Flow from Operating Activities Cash Received From Customers (Note-1) 615000 Less :Cash Payment Cash paid for inventory (Note-2) -362000 Salaries expenses -93000 Cash paid for Income Tax (Note-3) -29000 Net Cash Flow from operating Activities (A) 131000 Cash Flow from Investing Activities Sale of Investment (74000-52000-5000) 17000 Purchase of Equipment (279000-240000) -39000 Net Cash Used from Investing Activities (B) -22000 Cash Flow from Financing Activities Cash paid for dividends -30000 Net Cash Used from Financing Activities ( C ) -30000 Net increase (Decrease) in Cash (A+B+C) 79000 Cash balance beginning of the year 78000 Cash balance at end of the year 157000 Note-1 Cash Received From Customers Beginning Account receivable 185000 Add : Sale 600000 less : Ending Accounting Receivable -170000 615000 Note-2 Cash Paid for Inventory Beginning Account payable 121000 add : cost of goods sold 350000 less : Ending Account Payable -109000 362000 Note-3 Cash Paid for Income tax Beginning Income Tax payable 29000 add : Income tax 27000 less : Ending Income Tax Payable -27000 29000 2 Income Statement Particulars Amount Sales 600000 less : Cost of Goods sold -350000 Gross Profit (A) 250000 Less : Operating Expense Salaries expense 93000 Depreciation 17000 Loss on investment 5000 Operating profit before tax 135000 less : Income Tax 27000 Operating Profit (After Tax) 108000 3 Statement of Retained Earnings Opening balance 148000 Profit of the year 108000 Less : Dividend -30000 Closing Balance (Retained Earnings) 226000 4 Balance Sheet Assets Cash 157000 Account Receivable 170000 Less : Allowance for doubtful debts -30000 140000 Equipment 279000 Less : Accumulated depreciation -106000 173000 Investment 52000 Total Assets 522000 Liabilities Accounts Payable 109000 income Tax payable 27000 Shareholder Equity Common Stock 160000 Retained Earnings 226000 Total liabilities & Shareholder equity 522000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.