The company reported net income this year as follos:Sales$3,100,0001,922,000Cost of goods soldGross marginSelling and administrative expenses1,178,000956,500Net operating incomeNonoperating itema:221,500$ 65,500(21,500)Gain on sale of investmentsLoss on sale of equipment44,000265,50085,000Income before taxesIncome taxesNet income180,500Required:Using the indirect method, prepare a statement of cash flows for this year. (List a A comparative balance sheet for Lomax Company containing data for the last two years is as follows:Lomax CompanyComparative Balance SheetThis YearLast YearAssetsCurrent assets:Cash and cash equivalents76,000 $54,000622,500425,0007,500Accounts receivable600,000InventoryPrepaid expenses614,00014,0001,304,0001,109,0001,820,000Total current assetsProperty, plant, and equipment.Less accumulated depreciation2,395,000621,0001,774,000564,5001,255,500Net property, plant, and equipmentLong-term investments90,500145,000Loarto subsidiaries125,00072,500Total assets$3,293,500 $2,582,000Liabilities and Stockholders' EquityCurrent liabilitiesAccounts payable878,000 $575,00046,500Accrued liabilities28,000139,500122,000743,500Income taxes payableTotal current liabilities1,045,500Bonds payable645,000415,000Total liabilities1,690,5001,158,500Stockholders' equity:Common stock1,100,000503,0001,005,000Retained earningsTotal stockholders' equity418,5001,423,5001,603,000Total liabilities and stockholders' equity$3,293,500 $2,582,000The following additional information is available about the company's activities during this year:a. The company declared and paid a cash dividend this year.b. Bonds with a principal balance of $385,000 were repaid during this year.c. Equipment was sold during this year for $72,500. The equipment had cost $140,000 and had $46,000 in accumulated depreciationon the date of sale.d. Long-term investments were sold during the year for $120,000. These investments had cost $54,500 when purchased severalyears ago.e. The subsidiaries did not repay any outstanding loans during the year.f. Lomax did not repurchase any of its own stock during the year.

Name: The company reported net income this year as follos:Sales$3,100,0001,
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Description: The company reported net income this year as follos:Sales$3,100,0001,922,000Cost of goods soldGross marginSelling and administrative expenses1,178,000956,500Net operating incomeNonoperating itema:221,500$ 65,500(21,500)Gain on sale of investmentsLos

Cash flows means cash inflows and cash outflows of the business. Cash inflows means incoming of…

Business

Accounting

The company reported net income this year as follows: Sales $3,100,000 1,922,000 Cost of goods sold Gross margin Selling and administrative expenses 1,178,000 956,500 Net operating income 221,500 Nonoperating items: Gain on sale of investments Loss on sale of equipment $ 65,500 (21,500) 44,000 Income before taxes 265,500 85,000 $ 180,500 Income taxes Net income Required: Using the indirect method, prepare a statement of cash flows for this year. (List

The company reported net income this year as follows: Sales $3,100,000 1,922,000 Cost of goods sold Gross margin Selling and administrative expenses 1,178,000 956,500 Net operating income 221,500 Nonoperating items: Gain on sale of investments Loss on sale of equipment $ 65,500 (21,500) 44,000 Income before taxes 265,500 85,000 $ 180,500 Income taxes Net income Required: Using the indirect method, prepare a statement of cash flows for this year. (List

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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