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P17.118 (LO 2, 3) AP The financial statements of Milk Rover Lad follow Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Goodwill Total assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity MILK RIVER LTD. Balance Sheet December 31 Sales Cost of goods sold Gross profit Operating expenses Gain on sale of equipment Impairment loss on goodwill Profit from operations Other revenues and expenses Interest expense Profit before income tax Income tax expense Profit for the year 2024 $ 11,000 32,000 33,000 90,000 (30,000) 5,000 $143,000 MILK RIVER LTD. Income Statement Year Ended December 31, 2024 $ 18,000 2,000 42.000 18,000 63,000 $143,000 $64,000 (2.000) 11,000 2023 $ 5,000 24,000 20,000 78,000 (24,000) 16.000 $119,000 ructions Prepare a cash flow statement for the year using the indirect method. Prepare a cash flow statement for the year using the direct method. $ 15,000 4,000 52,750 14,000 33,250 $119,000 $256,000 140,000 116,000 73,000 43,000 39,000 9,250 $ 29,750 ditional information: 1. Equipment costing $24,000 was purchased with an $8,000 down payment and the remainder was financed with a note payable. 2. During the year, equipment was sold for $10.500 cash. This equipment had cost $12,000 original. ly and had a carrying amount of $8.500 at the time of sale. 3. All depreciation expenses are included in the operating expenses category. 4. Notes payable were also repaid during the year.

P17.118 (LO 2, 3) AP The financial statements of Milk Rover Lad follow Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Goodwill Total assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity MILK RIVER LTD. Balance Sheet December 31 Sales Cost of goods sold Gross profit Operating expenses Gain on sale of equipment Impairment loss on goodwill Profit from operations Other revenues and expenses Interest expense Profit before income tax Income tax expense Profit for the year 2024 $ 11,000 32,000 33,000 90,000 (30,000) 5,000 $143,000 MILK RIVER LTD. Income Statement Year Ended December 31, 2024 $ 18,000 2,000 42.000 18,000 63,000 $143,000 $64,000 (2.000) 11,000 2023 $ 5,000 24,000 20,000 78,000 (24,000) 16.000 $119,000 ructions Prepare a cash flow statement for the year using the indirect method. Prepare a cash flow statement for the year using the direct method. $ 15,000 4,000 52,750 14,000 33,250 $119,000 $256,000 140,000 116,000 73,000 43,000 39,000 9,250 $ 29,750 ditional information: 1. Equipment costing $24,000 was purchased with an $8,000 down payment and the remainder was financed with a note payable. 2. During the year, equipment was sold for $10.500 cash. This equipment had cost $12,000 original. ly and had a carrying amount of $8.500 at the time of sale. 3. All depreciation expenses are included in the operating expenses category. 4. Notes payable were also repaid during the year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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# P17.118 (LO 2, 3) AP The financial statements of Milk River Lad follow: Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Goodwill Total assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity Sales Cost of goods sold MILK RIVER LTD. Balance Sheet December 31 Gross profit Operating expenses Gain on sale of equipment Impairment loss on goodwill Profit from operations Other revenues and expenses Interest expense Profit before income tax Income tax expense Profit for the year 2024 $ 13,000 32,000 33,000 90,000 (30,000) 5,000 $143,000 $ 18,000 2,000 42,000 MILK RIVER LTD. Income Statement Year Ended December 31, 2024 18,000 63,000 $143,000 $64,000 (2.000) 11,000 2023 $ 5,000 24,000 20,000 78,000 (24,000) 16.000 $119,000 tructions Prepare a cash flow statement for the year using the indirect method. Prepare a cash flow statement for the year using the direct method. $ 15,000 4,000 52,750 14,000 33,250 $119,000 $256,000 140,000 116,000 73,000 43,000 4,000 39,000 9,250 $ 29,750 additional information: 1. Equipment costing $24,000 was purchased with an $8,000 down payment and the remainder was financed with a note payable. 2. During the year, equipment was sold for $10.500 cash. This equipment had cost $12,000 original- ly and had a carrying amount of $8,500 at the time of sale. 3. All depreciation expenses are included in the operating expenses category. 4. Notes payable were also repaid during the year.
Transcribed Image Text:# P17.118 (LO 2, 3) AP The financial statements of Milk River Lad follow: Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Goodwill Total assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity Sales Cost of goods sold MILK RIVER LTD. Balance Sheet December 31 Gross profit Operating expenses Gain on sale of equipment Impairment loss on goodwill Profit from operations Other revenues and expenses Interest expense Profit before income tax Income tax expense Profit for the year 2024 $ 13,000 32,000 33,000 90,000 (30,000) 5,000 $143,000 $ 18,000 2,000 42,000 MILK RIVER LTD. Income Statement Year Ended December 31, 2024 18,000 63,000 $143,000 $64,000 (2.000) 11,000 2023 $ 5,000 24,000 20,000 78,000 (24,000) 16.000 $119,000 tructions Prepare a cash flow statement for the year using the indirect method. Prepare a cash flow statement for the year using the direct method. $ 15,000 4,000 52,750 14,000 33,250 $119,000 $256,000 140,000 116,000 73,000 43,000 4,000 39,000 9,250 $ 29,750 additional information: 1. Equipment costing $24,000 was purchased with an $8,000 down payment and the remainder was financed with a note payable. 2. During the year, equipment was sold for $10.500 cash. This equipment had cost $12,000 original- ly and had a carrying amount of $8,500 at the time of sale. 3. All depreciation expenses are included in the operating expenses category. 4. Notes payable were also repaid during the year.
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