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    Statement of Cash Flows

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    Eva Ruth Medillo
    The company reported increases in assets such as cash, accounts receivable, and inventory from 2019 to 2020 on its statement of financial position. Its income statement for 2020 showed sales of $6.5 million and expenses of $1.6 million, resulting in income before tax of $1.85 million and net income of $1.5 million.

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    Statement of Cash Flows

    Uploaded by

    Eva Ruth Medillo
    100 views2 pages
    The company reported increases in assets such as cash, accounts receivable, and inventory from 2019 to 2020 on its statement of financial position. Its income statement for 2020 showed sales of $6.5 million and expenses of $1.6 million, resulting in income before tax of $1.85 million and net income of $1.5 million.

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    The company reported increases in assets such as cash, accounts receivable, and inventory from 2019 to 2020 on its statement of financial position. Its income statement for 2020 showed sales of $6.5 million and expenses of $1.6 million, resulting in income before tax of $1.85 million and net income of $1.5 million.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    100 views2 pages

    Statement of Cash Flows

    Uploaded by

    Eva Ruth Medillo
    The company reported increases in assets such as cash, accounts receivable, and inventory from 2019 to 2020 on its statement of financial position. Its income statement for 2020 showed sales of $6.5 million and expenses of $1.6 million, resulting in income before tax of $1.85 million and net income of $1.5 million.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    A Company reported the following comparative statement of financial position

    and income statement for 2020:

    Statement of financial position


    2020 2019
    Assets
    Cash 3,000,000 2,000,000
    Accounts Receivable 940,000 350,000
    Inventory 175,000 100,000
    Prepaid insurance 15,000 20,000
    Property, plant and equipment 2,000,000 2,000,000
    Accumulated depreciation - 550,000 - 500,000
    Patent 40,000
    ### 50,000
    5,620,000 4,020,000

    Liabilities and Equity


    Accounts Payable 170,000 150,000
    Accrued salaries payable 25,000 10,000
    Accrued interest payable 10,000 15,000
    Income tax payable 350,000 250,000
    Unearned rent income 10,000 40,000
    Mortgage payable 500,000 500,000
    Share capital 2,000,000 2,000,000
    Retained earnings 2,555,000 1,055,000
    5,620,000 4,020,000

    Income statement
    Year ended December 31, 2020

    Sales 6,500,000
    Cost of goods sold:
    Inventory - January 1 100,000
    Purchases 3,200,000
    Goods available for sale 3,300,000
    Inventory - December 31 - 175,000 3,125,000

    Gross income 3,375,000


    Rent income 80,000

    Total income 3,455,000

    Expenses:
    Salaries 950,000
    Insurance 40,000
    Other expenses 500,000
    Depreciation 50,000
    Amortization of patent 10,000
    Interest expense 55,000 1,605,000

    Income before tax 1,850,000

    Income tax 350,000

    Net income 1,500,000

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