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12/31/17 12/31/16 $6,000 $0.900 Cash Accounts receivable 62,400 50,800 Short-term debt investments (available-for-sale) 35,100 16,100 Inventory 40.100 60,400 Prepaid rent 5,100 4,000 152,400 131,000 (34,700) (24,000) 45,500 49,900 $311.900 $296.300 Equipment Accumulated depreciation equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity Sales revenue Cost of goods sold Gross profit $45,000 4,000 8,100 8,100 10,000 59,500 60,700 100,000 30,000 56.300 AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income 100,000 30,000 37,700 $311,000 $296,300 $20,000 6,000 4,000 $11,400 2,000 $337,125 170,500 160,625 120,000 40,025 9,400 30,625 6,125 $24,500 Dividends in the amount of $5,900 were declared and paid during 2017.Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017 Prepare a statement of cash flows using the indirect method.

12/31/17 12/31/16 $6,000 $0.900 Cash Accounts receivable 62,400 50,800 Short-term debt investments (available-for-sale) 35,100 16,100 Inventory 40.100 60,400 Prepaid rent 5,100 4,000 152,400 131,000 (34,700) (24,000) 45,500 49,900 $311.900 $296.300 Equipment Accumulated depreciation equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity Sales revenue Cost of goods sold Gross profit $45,000 4,000 8,100 8,100 10,000 59,500 60,700 100,000 30,000 56.300 AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income 100,000 30,000 37,700 $311,000 $296,300 $20,000 6,000 4,000 $11,400 2,000 $337,125 170,500 160,625 120,000 40,025 9,400 30,625 6,125 $24,500 Dividends in the amount of $5,900 were declared and paid during 2017.Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017 Prepare a statement of cash flows using the indirect method.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...
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Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock. $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity Sales revenue Cost of goods sold Gross profit AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Operating expenses Operating income 12/31/17 12/31/16 $6,000 $5,900 52,400 50,800 35,100 10,100 40.100 60,400 5,100 4,000 152,400 131,000 (34,700) (24,000) 45,500 49,900 $311,900 $296,300 Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $45,900 $39,900 4,000 6,000 8,100 4,000 8,100 10,000 59,500 68,700 100,000 100,000 30,000 30,000 56.300 37,700 5311,900 $296,300 $11,400 2,000 $337,125 176,500 160,625 120,500 40,025 9,400 30,625 6,125 $24,500 Dividends in the amount of $5,900 were declared and paid during 2017.Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017 Prepare a statement of cash flows using the indirect method.
Transcribed Image Text:Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock. $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity Sales revenue Cost of goods sold Gross profit AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Operating expenses Operating income 12/31/17 12/31/16 $6,000 $5,900 52,400 50,800 35,100 10,100 40.100 60,400 5,100 4,000 152,400 131,000 (34,700) (24,000) 45,500 49,900 $311,900 $296,300 Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $45,900 $39,900 4,000 6,000 8,100 4,000 8,100 10,000 59,500 68,700 100,000 100,000 30,000 30,000 56.300 37,700 5311,900 $296,300 $11,400 2,000 $337,125 176,500 160,625 120,500 40,025 9,400 30,625 6,125 $24,500 Dividends in the amount of $5,900 were declared and paid during 2017.Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017 Prepare a statement of cash flows using the indirect method.
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