Question

Income Statement For the Year Ended December 31, 2021 $2,576,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses $1,550,000 778,000 19,000 7,200 11,000 40,e00 2,405,200 $ 170,800 Net income VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: $ 77,560 52,000 127,000 4,440 $152,320 72,200 105,000 8,880 Cash Accounts receivable Inventory Prepaid rent Long-term assets : Investments 97,000 202,000 254,000 (59,400) $832,000 224,000 202,000 (40,400) $646,600 Land Equipment 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 Retained earnings $ 73,000 8,400 13,200 $ 58,800 5,200 14, 200 217,000 269,000 220,000 264,800 $ 832,000 220,000 115,000 $646,600 Total liabilities and stockholders' equity

Answer 1

VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from Operating Activities Net Income $ 170,800 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense $ 19,000 Loss on sale of land $ 7,200 Increase in accounts receivable $ 20,200 Decrease in inventory $ 22,000 Increase in prepaid rent $ -4,440 Decrease in accounts payable $ 14,200 Decrease in interest payable $ -3,200 Increase in income tax payable $ 1,000$ 7,160 Net cash flow from Operating Activities $ 177,960 Cash flows from Investing Activities Purchase of bond investment $ -97,000 Proceed from sale of land $ 14,800 Net cash flow used for Investing activities $ -82,200 Cash flows from Financing Activities Dividend paid $ 21,000 Net Cash flow from Financing Activities $ -21,000 Change in cash $ 74,760 Beginning cash balance $ 77,560 Ending cash balance $152,320 Noncash Investing and Financing Activities: Purchase of equipment in exchange of note payable $ 52,000