The income statement, balance sheets, and additional information for Video Phone
ID: 2567470 • Letter: T
Question
The income statement, balance sheets, and additional information for Video Phones, Inc, are provided VIDEO PHONES, ING Income Statement For the Year Ended December 31, 2018 Net sales Expenses $ 3,636,000 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $ 2,450,000 958,000 37,000 9,000 20,000 58,000 Total expenses 3,532,000 Net income 104.000 VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets Cash Accounts receivable nventory Prepaid rent S 254,600 227,800 70,000 145,000 7,200 92,000 105,000 14,400 Long-term assets Investments Land Equipment Accumulated depreciation 115,000 220.000 290 000 260,000 220,000 44.000) Total assets S 1.010,000 $ 886.000Explanation / Answer
Statement of cash flow :
Cash flow from operating activities Net income 104000 Adjustment to reconcile net income Depreciation 37000 Loss on sale of land 9000 Increase account receivable (22000) Decrease inventory 40000 Increase prepaid rent (7200) Decrease account payable (16000) Decrease interest payable (5000) Increase income tax payable 1000 Net cash flow from operating activities 140800 Cash flow from investing activities Purchase investment in bonds (115000) Sale land 31000 Net cash flow from investing activities (84000) cash flow from financing activities Dividend paid (30000) Net cash flow from financing activities (30000) Net cash increase 26800 Beginning cash 227800 Ending cash 254600 Note : Non cash activities Purchase of equipment in exchange of notes payable 70000Related Questions
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