50.1K

Verified Solution

Link Copied!

LG Network Inc.'s balance sheet and income statement are as follows: $922,600 550 200 $372,400 GOLM LE LAG Network Inc. Income Statement For Year Ended December Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 25,200 Other expenses 226,800 Total operating expenses Profit from operations Income taxes Profit 252,000 $120,400 WR 12,600 $107,800 SENSUSE LAABURRATSALINOSILNOGEN SOLUTION UTINERD LAG Network Inc. Comparative Balance Sheet Information December 31 ssets 2020 Cash $ 81,130 $ 53,200 -ccounts receivable 40,400 37 200 2019 glio Prev 2 laved LAG Network Inc. Comparative Balance Sheet Information Assets December 31 2020 2019 Cash $ 81,130 $ 53,209 Accounts receivable 40,400 Merchandise inventory 37,200 283,770 238,600 Equipment 148,400 137,200 Accumulated depreciation (65,800) (40,600) Total assets $487,900 $425,600 Liabilities and Equity Accounts payable $ 25,200 $ 37,800 Income taxes payable 5,600 4,200 Common shares 357,000 346,500 Retained earnings 100,100 37,100 Total liabilities and equity $487,900 $425,600 Additional Information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $11,200 cash. b. 4,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $44,800 of cash dividends during the year. Goved Income taxes payable Common shares Retained earnings Total liabilities and equity 5,600 357,000 100,100 $487,990 4,200 346,500 37,100 $425,600 Additional Information regarding LAG Network Inc.'s activities during 2020 a. Equipment is purchased for $11,200 cash. b. 4,200 common shares are issued for cash at $2.50 per share. C. Declared and paid $44.800 of cash dividends during the year. Other Information regarding LAG Network Inc.: a. All sales are credit sales. b. All credits to accounts receivable are receipts from customers. C. All purchases of merchandise are on credit d. All debits to accounts payable result from payments for merchandise e. Other operating expenses are cash expenses. f. The only decrease in Income taxes payable is for payment of taxes. Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating any deduction In cash and cash outflows as negative amounts.)

Answer & Explanation Solved by verified expert

See Answer