Question

Income Statement Sales revenues 760,500 cost of goods sold 225,000 Operating expenses (excluding depreciation) 166,500 Depreciation...

Income Statement

Sales revenues

760,500

cost of goods sold

225,000

Operating expenses (excluding depreciation)

166,500

Depreciation expenses

13,500

Loss on disposal of equipment

4,500

Interest expenses

63,000

Total operating expenses

(472,500)

income before taxes

288,000

income tax expense

(70,500)

net income

217,500

Statement of financial Positions

31/12/2019

31/12/2018

Assets

Cash

82,500

49,500

accounts receivables

30,000

45,000

inventory

22,500

15,000

prepaid insurance

7,500

1,500

Land

195,000

30,000

Building

240,000

60,000

less: accumulated depreciation- Building

(16,500)

(7,500)

Equipment

40,500

15,000

less: accumulated depreciation- Equipment

(4,500)

(1,500)

total assets

597,000

207,000

Liabilities and stockholders' equity

31/12/2019

31/12/2018

Accounts payable

42,000

18,000

Income tax payable

9,000

12,000

Bonds payable

195,000

30,000

common stock

105,000

75,000

Retained earnings

246,000

72,000

Total liabilities and stockholders’ equity

597,000

207,000

Additional Information

  1. The company sold equipment for $6,000 cash.

  2. A building costing $180,000 was purchased for cash.

  3. Equipment costing $37,500 was also purchased for cash.

  4. Issued common stock for $30,000 cash

  5. Thecompanydeclaredandpaidcashdividend

  6. Issued $165,000 of long-term bonds in direct exchange for land.

You are required to prepare a statement of cash flow using indirect method. Then answer the below questions.

  1. How much is the net cash provided by operating activities?

  2. How much is the net cash used by investing activities?

  3. How much is the net cash used by financing activities?

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