Metlock, Inc.’s income statement contained the condensed
information below.
Metlock, Inc. |
||||
Service revenue |
$1,949,700 |
|||
Operating expenses, excluding depreciation |
$1,234,140 |
|||
Depreciation expense |
110,550 |
|||
Loss on disposal of plant assets |
32,160 |
1,376,850 |
||
Income before income taxes |
572,850 |
|||
Income tax expense |
112,560 |
|||
Net income |
$460,290 |
Metlock, Inc.’s balance sheet contained the comparative data at
December 31.
2017 |
2016 |
|||
Accounts receivable | $140,700 | $120,600 | ||
Accounts payable | 82,410 | 64,320 | ||
Income taxes payable | 26,130 | 14,070 |
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash
flows using the indirect method. (Show amounts that
decrease cash flow with either a - sign e.g. -15,000 or in
parenthesis e.g. (15,000).)
Solution
Cash flows from operating activities | ||
Net income | $ 460,290.00 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Loss on disposal of plant assets | $ 32,160.00 | |
Depreciation expense | $ 110,550.00 | |
Changes in current operating assets and liabilities | ||
Increase in accounts receivable | $ (20,100.00) | |
Increase in accounts payable | $ 18,090.00 | |
Increase in income taxes payable | $ 12,060.00 | |
Net cash provided by operating activities | $ 613,050.00 |
Metlock, Inc.’s income statement contained the condensed information below. Metlock, Inc. Income Statement For the Y...
Shamrock, Inc.'s income statement contained the condensed information below. Shamrock, Inc. Income Statement For the Year Ended December 31, 2017 $1,775,100 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $1,123,620 100,650 29,280 1,253,550 521,550 102,480 $419,070 Shamrock, Inc.'s balance sheet contained the comparative data at December 31. 2017 2016 Accounts receivable Accounts payable Income taxes payable $128,100 75,030 23,790 $109,800 58,560 12,810 Accounts payable pertain...
Whispering Winds Corp.'s income statement contained the condensed information below. Whispering Winds Corp. Income Statement For the Year Ended December 31, 2017 Service revenue $2,104,900 Operating expenses, excluding depreciation $1,332,380 Depreciation expense 119,350 Loss on disposal of plant assets 34,720 1,486,450 Income before income taxes 618,450 Income tax expense 121,520 Net income $496,930 Whispering Winds Corp.'s balance sheet contained the comparative data at December 31. Accounts receivable Accounts payable Income taxes payable 2017 2016 $151,900 $130,200 88,970 69,440 28,210 15,190...
Zumbrunn Company’s income statement contained the condensed information below. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2017 Service revenue $970,700 Operating expenses, excluding depreciation $624,000 Depreciation expense 56,000 Loss on disposal of equipment 25,800 705,800 Income before income taxes 264,900 Income tax expense 39,000 Net income $225,900 Zumbrunn’s balance sheet contained the comparative data at December 31, shown below. 2017 2016 Accounts receivable $74,300 $59,700 Accounts payable 40,100 27,900 Income taxes payable 12,300 6,500 Accounts payable pertain...
QueSLIUI 7 View Current Art in Progress Kingbird, Inc's income statement contained the condensed information below Kingbird, Inc. Income Statement For the Year Ended December 31, 2022 Service revenue $2,037.000 Operating expenses, acluding depreciation $1.289.400 Deprecation expense 115.500 Loss on disposal of plant assets 33.600 1438.500 Income before income tas Income taxopene Net Income Kind, Inc's balance sheets contained the following comparative data at December 31 2022 2021 Accounts receivable Accounts payable Income taxes payable $147,000 $125.000 36 100 67...
Question 1 The income statement for the year ended December 31, 2017, for Metlock Manufacturing Company contains the following condensed information. METLOCK CO. INCOME STATEMENT Revenues $ 6,565,000 Operating expenses (excluding depreciation) $4,902,000 Depreciation expense 852,000 5,754,000 Income before income tax 811,000 Income tax expense 364,950 Net income $ 446,050 Included in operating expenses is a $13,000 loss resulting from the sale of machinery for $252,000 cash. The company purchased machinery at a cost of $722,000. Metlock reports the following...
Wildhorse Company’s income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $836,000 Operating expenses (excluding depreciation) $626,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 712,000 Income before income taxes 124,000 Income tax expense 40,000 Net income $84,000 Wildhorse’s balance sheet contained the following comparative data at December 31. 2017 2016 Accounts receivable $38,000 $53,000 Accounts payable 41,000 30,000 Income taxes payable 4,100 8,400 (Accounts payable pertains to operating expenses.) Prepare the...
Waterway Company's income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $839,000 $624,000 Operating expenses (excluding depreciation) Depreciation expense 60,000 Loss on sale of equipment 26,000 710,000 Income before income taxes 129,000 Income tax expense 39,000 $90,000 Net income Waterway's balance sheet contained the following comparative data at December 31 2017 2016 $39,000 $53,000 Accounts receivable Accounts payable 40,000 32,000 Income taxes payable 4,200 8,300 (Accounts payable pertains to operating expenses.) Prepare the...
Problem 17-06A Your answer is partially correct. Try again. Zumbrunn Company's income statement contained the following condensed information. $970,700 ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 Service revenue Operating expenses, excluding depreciation $625,000 Depreciation expense 54,300 Loss on disposal of plant assets 25,200 Income before income taxes Income tax expense 704,500 266,200 39,700 Net income $226,500 Zumbrunn's balance sheets contained the comparative data at December 31, shown below. 2020 2019 Accounts receivable Accounts payable Income taxes...
Metlock Inc. reported the following information at the end of its 2019 fiscal year. Metlock Inc. Statement of Financial Position As at April 30 Assets 2020 2019 Cash 209,000 155,000 Accounts receivable 112,000 94,000 Inventory 108,000 250,000 Prepaid operating expenses 19,000 13,000 Long term investments 182,000 84,000 Equipment 1,237,000 1,170,000 Less: Accumulated depreciation (367,000 ) (369,000 ) 1,500,000 1,397,000 Liabilities and Shareholders' Equity Accounts payable 52,000 65,000 Income tax payable 27,000 24,000 Bonds payable 673,000 765,000 Common shares 300,000 245,000...
Vaughn Company's income statement for the year ended December 31, 2017, contained the following condensed information Service revenue $847,000 Operating expenses (excluding depreciation) $629,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 715,000 Income before income taxes 132,000 Income tax expense 41,000 $91,000 Net income Vaughn's balance sheet contained the following comparative data at December 31 2017 2016 Accounts receivable $35,000 $53,000 Accounts payable 42,000 30,000 Income taxes payable 4,100 8,800 (Accounts payable pertains to operating expenses.) Prepare the...