Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc company comparative balance sheet december 31

ABC COMPANY Comparative Balance Sheet December 31 2018 2017 Assets Cash Accounts Receivable Inventory Equipment...

80.2K

Verified Solution

Question

Accounting

image
image
ABC COMPANY Comparative Balance Sheet December 31 2018 2017 Assets Cash Accounts Receivable Inventory Equipment Accumulated depreciation-equipment $38,000 30,000 27,000 60,000 (29,000) $126,000 $20,000 14,000 20,000 78,000 24,000) $108,000 Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $24,000 7,000 27,000 18,000 50,000 $126,000 $15,000 8,000 33,000 14,000 38,000 $108,000 Total ABC COMPANY Income Statement For the Year ended December 31, 2018 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $242,000 175,000 67,000 24,000 43,000 3,000 40,000 8,000 $32,000 Additional data: 1. Dividends declared and paid were $25,000. 2. During the year equipment was sold for $9,500 cash. This equipment cost $18,000o originally and had a book value of $8,500 at the time of sale. 3. All depreciation expense, $15,500, is in the operating expenses. 4. All sales and purchases are on account. Instructions (a) Prepare a statement of cash flows using the indirect method. (b) Compute free cash flow

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students