CashAccounts receivableInventoryLong-term investmentsTotal assetsLiabilities and shareholders' equityAccounts payableOperating expenses payableBonds payableCommon stockRetained earningsTotalsWentworth CompanyBalance Sheetsas of December 31SalesCost of goods sold:Beginning inventoryPurchasesWentworth CompanyIncome StatementFor the Year Ended December 31, 2024Goods available for saleLess: ending inventoryCost of goods soldGross profit2024$ 18,500203,000188,0000Operating expensesIncome from operationsOther expenses:Loss on sale of long-term investmentNet loss$ 409,500$ 79,80024,80074,000133,00097,900$ 409,500$ 233,000338,000571,000188,0002023$ 128,000113,000233,00068,000542,000$ 128,00015,800108,000133,000157,200$542,000$ 573,000383,000190,000188,0002,000(8,308)$ (6,300)Cash dividends of $53,000 were paid in 2024.Required:Prepare a statement of cash flows for 2024 using the direct method.Note: Amounts to be deducted should be Indicated with a minus sign.

The cash flow statement is prepared to record the cash flow from various activities during the…

Cash Accounts receivable Inventory Long-term investments Total assets Liabilities and shareholders' equity Accounts payable Operating expenses payable Bonds payable Common stock Retained earnings Totals Company Balance Sheets as of December 31 Sales Cost of goods sold: Beginning inventory Purchases Goods available for sale Less: ending inventory Cost of goods sold Gross profit Wentworth Company Income Statement For the Year Ended December 31, 2024 4 2024 $ 18,500 203,000 188,000 0 Operating expenses Income from operations Other expenses: Loss on sale of long-term investment Net loss Cash dividends of $53,000 were paid in 2024. $ 409,500 $ 79,800 24,800 74,000 133,000 97,900 $ 409,500 $ 233,000 338,000 571,000 188,000 2023 $ 128,000 113,000 233,000 68,000 $ 542,000 $ 128,000 15,800 108,000 133,000 157,200 $ 542,000 $ 573,000 383,000 190,000 188,000 2,000 (8,300) $ (6,300) Required: Prepare a statement of cash flows for 2024 using the direct method.

Cash Accounts receivable Inventory Long-term investments Total assets Liabilities and shareholders' equity Accounts payable Operating expenses payable Bonds payable Common stock Retained earnings Totals Company Balance Sheets as of December 31 Sales Cost of goods sold: Beginning inventory Purchases Goods available for sale Less: ending inventory Cost of goods sold Gross profit Wentworth Company Income Statement For the Year Ended December 31, 2024 4 2024 $ 18,500 203,000 188,000 0 Operating expenses Income from operations Other expenses: Loss on sale of long-term investment Net loss Cash dividends of $53,000 were paid in 2024. $ 409,500 $ 79,800 24,800 74,000 133,000 97,900 $ 409,500 $ 233,000 338,000 571,000 188,000 2023 $ 128,000 113,000 233,000 68,000 $ 542,000 $ 128,000 15,800 108,000 133,000 157,200 $ 542,000 $ 573,000 383,000 190,000 188,000 2,000 (8,300) $ (6,300) Required: Prepare a statement of cash flows for 2024 using the direct method.

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 8E: Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives...

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Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: The following; additional information is also available. The December 31, 2019, ending inventory is 14,700. During 2019, 4,200 shares of'common stock were outstanding the entire year. The income tax rate 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Gaskins cost of goods sold. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 multiple-step income statement. 4. Prepare a 2019 statement of comprehensive income.
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The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…
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