VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities
VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 52PSA
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Question
The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided.
VIRTUAL GAMING SYSTEMS | ||
Income Statement | ||
For the Year Ended December 31, 2024 | ||
Net sales | $2,570,000 | |
---|---|---|
Gain on sale of land | 5,500 | |
Total revenues | 2,575,500 | |
Expenses: | ||
Cost of goods sold | $1,635,000 | |
Operating expenses | 612,000 | |
30,000 | ||
Interest expense | 31,000 | |
Income tax expense | 77,000 | |
Total expenses | 2,385,000 | |
Net income | $190,500 |
VIRTUAL GAMING SYSTEMS | ||
Balance Sheets | ||
December 31 | ||
2024 | 2023 | |
---|---|---|
Assets | ||
Current assets: | ||
Cash | $343,380 | $280,860 |
67,300 | 83,000 | |
Inventory | 155,500 | 142,000 |
Prepaid rent | 4,420 | 6,840 |
Long-term assets: | ||
Investments | 202,000 | 110,000 |
Land | 213,500 | 267,000 |
Equipment | 244,000 | 217,000 |
(138,500) | (108,500) | |
Total assets | $1,091,600 | $998,200 |
Liabilities and |
||
Current liabilities: | ||
Accounts payable | $33,500 | $95,000 |
Interest payable | 4,800 | 3,700 |
Income tax payable | 23,800 | 27,500 |
Long-term liabilities: | ||
Notes payable | 259,000 | 232,000 |
Stockholders' equity: | ||
Common stock | 427,000 | 370,000 |
343,500 | 270,000 | |
Total liabilities and stockholders’ equity | $1,091,600 | $998,200 |
Additional Information for 2024:
- Purchased additional investment in stocks for $92,000.
- Sold land for $59,000. The land originally was purchased for $53,500, resulting in a $5,500 gain being recorded at the time of the sale.
- Purchased $27,000 in equipment by issuing a $27,000 long-term note payable to the seller. No cash was exchanged in the transaction.
- Declared and paid a cash dividend of $117,000.
- Issued common stock for $57,000.
Required:
Prepare the statement of
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