VIDEO PHONES, INC Income Statement For the Year Ended December 31, 2018 $3,136,0
ID: 2393744 • Letter: V
Question
VIDEO PHONES, INC Income Statement For the Year Ended December 31, 2018 $3,136,000 Net sales Expenses Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $2,050,000 878,000 29,000 8,200 16,000 50,000 Total expenses 3,031,200 Net income 104,800 VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent 83,200 105,000 12,480 $179,720 160,760 62,000 137,000 6,240 Long-term assets Investments Land Equipment Accumulated depreciation 107,000 212,000 274,000 (71,400) 244,000 212,000 (42,400) Total assets $902,000 $ 779,600 Liabilities and Stockholders' Equity Current liabilities 83,000 10,400 14,200 67,800 $ Accounts payable Interest payable Income tax payable 6,200 15,200 289,000 320,000 Long-term liabilities Notes payable 227,000 Stockholders' equity: Common stock Retained earnings 320,000 125,000 203,800 Total liabilities and stockholders' equity $902,000 $ 779,600Explanation / Answer
VIDEO PHONES INC.
Statement of Cash Flows
For the year ended December 31, 2018
Amount ($)
Cash flows from operating activities;
Net Income
104,800
Adjustments to reconcile net income to
Net cash provided by operating activities
Add : Depreciation Expenses
29,000.0
Add : Loss on sale of Land
8,200.0
Less : Decrease in accounts receivable
(21,200.0)
Add : Decrease in inventories
32,000.0
Less : Increase in Prepaid Rent
(6,240.0)
Less : Decrease in Accounts Payables
(15,200.0)
Less : Decrease in Interest Payables
(4,200.0)
Add : Increase in Income Tax Payables
1,000.0
23,360
Net cash provided by operating activities
128,160
Cash flows from investing activities:
Purchase of Investments in Bonds
(107,000.0)
Proceeds from sale of Land
23,800.0
Net cash used by investing activities
(83,200)
Cash flows from financing activities:
Dividend Paid
(26,000)
Net cash used by financing activities
(26,000)
Net Decrease in cash
18,960
Add : Cash balance, at the beginning
160,760
Cash balance, at the end
179,720
VIDEO PHONES INC.
Statement of Cash Flows
For the year ended December 31, 2018
Amount ($)
Cash flows from operating activities;
Net Income
104,800
Adjustments to reconcile net income to
Net cash provided by operating activities
Add : Depreciation Expenses
29,000.0
Add : Loss on sale of Land
8,200.0
Less : Decrease in accounts receivable
(21,200.0)
Add : Decrease in inventories
32,000.0
Less : Increase in Prepaid Rent
(6,240.0)
Less : Decrease in Accounts Payables
(15,200.0)
Less : Decrease in Interest Payables
(4,200.0)
Add : Increase in Income Tax Payables
1,000.0
23,360
Net cash provided by operating activities
128,160
Cash flows from investing activities:
Purchase of Investments in Bonds
(107,000.0)
Proceeds from sale of Land
23,800.0
Net cash used by investing activities
(83,200)
Cash flows from financing activities:
Dividend Paid
(26,000)
Net cash used by financing activities
(26,000)
Net Decrease in cash
18,960
Add : Cash balance, at the beginning
160,760
Cash balance, at the end
179,720
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