2024 Year Increase (Decrease) 2023 Amount Assets Current assets: Cash Accounts receivable Inventory Supplies $ 206,400 $ 292,500 1,104,000 1,237,500 2,371,200 1,575,000 182,400 135,000 Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock 1,584,000 1,584,000 (648,000) (324,000) $ 4,800,000 $4,500,000 $ 201,600 $ 117,000 0 4,500 72,000 72,000 1,368,000 1,368,000 922,500 922,500 Retained earnings 2,235,900 2,016,000 Total liabilities and stockholders' equity $ 4,800,000 $ 4,500,000 %
2024 Year Increase (Decrease) 2023 Amount Assets Current assets: Cash Accounts receivable Inventory Supplies $ 206,400 $ 292,500 1,104,000 1,237,500 2,371,200 1,575,000 182,400 135,000 Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock 1,584,000 1,584,000 (648,000) (324,000) $ 4,800,000 $4,500,000 $ 201,600 $ 117,000 0 4,500 72,000 72,000 1,368,000 1,368,000 922,500 922,500 Retained earnings 2,235,900 2,016,000 Total liabilities and stockholders' equity $ 4,800,000 $ 4,500,000 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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 | |
Depreciation expense | 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 |
Accounts receivable | 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 |
Retained earnings | 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 cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted,
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