Skysong Company Comparative Balance Sheets December 31 Assets 2017 2016 $ 72,450
ID: 2599337 • Letter: S
Question
Skysong Company
Comparative Balance Sheets
December 31
Assets
2017
2016
$ 72,450
$ 41,400
41,400
28,980
57,960
41,400
124,200
161,460
(66,240
)
(49,680
)
$229,770
$223,560
Liabilities and Stockholders’ Equity
$ 39,330
$ 31,050
14,490
16,560
35,190
68,310
37,260
28,980
103,500
78,660
$229,770
$223,560
Skysong Company
Income Statement
For the Year Ended December 31, 2017
$500,940
362,250
138,690
$37,260
12,420
49,680
89,010
6,210
82,800
16,560
$ 66,240
(a)
Skysong Company
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash$ 72,450
$ 41,400
Accounts receivable41,400
28,980
Inventory57,960
41,400
Property, plant, and equipment124,200
161,460
Accumulated depreciation(66,240
)
(49,680
)
Total$229,770
$223,560
Liabilities and Stockholders’ Equity
Accounts payable$ 39,330
$ 31,050
Income taxes payable14,490
16,560
Bonds payable35,190
68,310
Common stock37,260
28,980
Retained earnings103,500
78,660
Total$229,770
$223,560
Skysong Company
Income Statement
For the Year Ended December 31, 2017
$500,940
Cost of goods sold362,250
Gross profit138,690
Selling expenses$37,260
Administrative expenses12,420
49,680
Income from operations89,010
Interest expense6,210
Income before income taxes82,800
Income tax expense16,560
Net income$ 66,240
Additional data:
1. Depreciation expense was $36,225. 2. Dividends declared and paid were $41,400. 3. During the year equipment was sold for $17,595 cash. This equipment cost $37,260 originally and had accumulated depreciation of $19,665 at the time of sale.
Explanation / Answer
Answer:-
Skysong Company Statement of Cash Flow (Using Indirect Method) For the year ended December 31,2017 Particulars Amount $ $ Cash flow from opreating activities Net Income 66240 Adjustments to reconcile net income to net cash provided by opreating activities Adjustment for non cash effects Depreciation 36225 Change in opreating assets & liabilities Increase in Accounts Receiviable -12420 Increase in Inventory -16560 Increase in Accounts payable 8280 Decrease in Accounts payable -2070 Net cash flow from opreating activities (a) 79695 Cash Flow from Financing activities Bonds payable -33120 Issue common stock 8280 Dividends paid -41400 Net cash Flow from Financing activities (b) -66240 Cash Flow from Investing activities Equipment sold 17595 Net cash Flow from Investing activities (c) 17595 Net Channge in cash c=a+b+c 31050 Beginning cash balance 41400 Closing cash balance 72450Related Questions
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