Question

Part A - Using the trial balance provided below, prepare the following: 1. Multiple-Step Income Statement (4 points) 2. Retained Earnings Statement (1 points) 3. Classified Balance Sheet (10 points) Part B - Using the financial information provided (see page 2), prepare the Statement of Cash Flows (10 points). Note: Part B is UNRELATED to Part A. Part A - Trial Balance $ Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Trading Securities (cost $ 145,000 > Equipment Accumulated De perciation Equipment Building Accumulated De perciation Building Land Franchises Patents Debt Investments (long term) Equity Investments (long term) Accounts Payable Salaries and Wages Payable Notes Payable (short term) Dividends Payable Accrued Liabilities Notes Payable (long term) Bonds Payable Common Stock, Par $ 5.00 APIC Treasury Stock Retained Earnings Dividends Declared Sales Revenue Sales Discounts Sales Returns and Allowances COGS Selling Expenses Administrative Expenses Loss due to storm damage Rent Revenue Gain on sale of equipment Income Tax Expense Useh Tele Solutions, Inc. Trial Balance December 31, 2019 Debit Credit 652,000 850, 210 $ 25,000 1,586,000 153,000 622,790 60,000 1,040,000 152,000 260,000 250,000 405,000 650,000 350,000 725,000 18,000 177,000 250,000 125,000 1,325,000 1,500,000 1,000,000 80,000 225.000 715,000 500,000 11,555,000 55,000 40,000 6,180,000 2,250,000 1,100,000 238,000 110,000 15,000 425,000 17,832,000 $ 17,832,000 $

Answer 1

Answer with formulas in picture below

A B с D E 1 Income statement 2 Particulars Amount 3 Sales 11555000 4 (-) returns -55000 5 (-) discounts -40000 11460000 =SUM(B3:35) 6 7 COGS 6180000 8 Gross profit 5280000 =C5-C7 9 10 selling expenses 2250000 11 admin expenses 1100000 12 Operating Income 1930000 =C8-C10-C11 13 14 Other Income 15 rent revenue 110000 16 gain on sale of equipment 15000 17 (-) loss due to storm damage -238000 - 113000 =SUM(B15:B17) 18 19 Income before taxes 1817000 =C12+C17 20 Tax expense 425000 21 22 Net income 1392000 =C19-C20 23 24 Statement of retained earnings 25 Particulars Amount 26 Opening Balance 715000 27 + Net income from income st 1392000 28 - dividend declared 500000 29 closing balance 1607000 =B26+B27-B28 30

B с D E F G H 2462000 SUM(B35:B38) 1325000 1500000 1295000 6582000 -C48+C414040*C38 31 32 Balance Sheet 33 Equity And Liabilities 34 Shareholders Equity 35 Common Stock 1000000 36 + APIC 80000 37 - Treasury Stock -225000 38 + Retained Earnings 1607000 39 40 Notes payable (long term) 41 Bonds Payable 42 43 Current Liabilities 44 Accounts Payable 725000 45 salaries and wages payable 18000 46 Notes payable short term) 177000 47 dividend payable 250000 48 Accrued liabilities 125000 49 50 Total equity and liabilites 51 52 Assets 53 Tangible assets 54 Property Plant and equipment 55 equipment 622790 56 - acc dep on equipment 60000 57 building 1040000 58 -acc dep on building 152000 59 land 260000 60 61 intangible assets 62 franhise 250000 63 patent 405000 64 65 Long term investments 66 debt 650000 67 equity 350000 68 69 Current Assets 70 Inventory 1586000 71 Cash 652000 72 Account receivable 850210 73 - allowance for bad debt 25000 74 trding security 153000 75 Total Assets 1710790 =B55-856+B57-B58+B59 655000 -SUM(B62:363) 1000000 =SUM(B66:B67) 3216210 =B70+B71+B72-B73+374 6582000

B)

here is the cash flow statement

A B с D E Cash Flow Statement Amount 1 2 Particulars 3 Cash from operating activities 4 Net Income 5 + Depreciation (650000 - 415000) 6 + changes in working capital (see note) 7 1495000 235000 745000 2475000 -SUM(B4:36) 8 9 -300000 =-(1750000-1450000) -200000 1975000 =C14+C11+C6 6575000 10 Cash from investing activities 11 CAPEX ( difference in equipment) 12 13 Cash from financing activities 14 Dividend paid 15 16 17 Net cash flow for the year 18 Opening balanceof cash 19 20 Closing balance 21 22 Note 23 Working capital 1/1/17 24 Working capital 31/12/17 25 26 27 28 29 8550000 =C17+C18 595000 =1550000 - 955000 - 150000 =1100000-1250000 745000 =B23-B24