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PANDA EXPRESS LIMITED Statement of Income Year Ended March $31,2023$

$2023$ $$118,00062,00040,000100,000(40,000)$ $$280,000$

$ $30,00026,00018,00078,000128,000$ $$280,000$

$2022$ $ $46,00068,00030,000156,000(48,000)$ $$252,000$

$ $46,00016,00066,000$

$48,000$

$76,000$ $$252,000$

$$760,000580,000180,000$

$72,0008,000100,00020,000$ $ $80,000$

Sales...................................................................................................................................... Cost of goods sold $................................................................................................................$ Gross profit $...........................................................................................................................$ Operating expenses $.............................................................................................................$ Interest expense $...................................................................................................................$ Income before income tax $...................................................................................................$ Income tax expense $.............................................................................................................$ Net income $...........................................................................................................................$

Additional information regarding fiscal $2023$:

$1.$ Dividends declared and paid were $$28,000.$

$2.$ During the year, equipment was sold for $$24,000$ cash. This equipment cost $$56,000$ originally and

had a carrying amount of $$24,000$ at the time of sale.

$3.$ Depreciation expense is included in operating expenses.

$4.$ All sales and purchases are on account.

$5.$ Accounts payable pertain to merchandise suppliers.

$6.$ All operating expenses except for depreciation were paid in cash.

Instructions

Using the direct method, prepare a statement of cash flows for the year ended March $31,2023.$ Panda uses ASPE.

Preparation of statement of cash flow $($direct method$)$

The financial statements of Panda Express Limited appear below:

PANDA EXPRESS LIMITED

Comparative Statements of Financial Position

March $31$

Assets

Cash

Accounts receivable

Inventory

Property, plant, and equipment

Accumulated depreciation

Total

Liabilities and Shareholders' Equity

Accounts payable

Income tax payable

Mortgage payable.

Common shares

Retained earnings

Total

PANDA EXPRESS LIMITED

Statement of Income

Year Ended March $31,2023$

Sales

Cost of goods sold

Gross profit

Operating expenses

Interest expense

Income before income tax

Income tax expense

Net income

$$760,000$

$580,000$

$180,000$

$72,000$

$8,000$

$100,000$

$20,000$

$$80,000$

Additional information regarding fiscal $2023$:

Dividends declared and paid were $$28,000.$

During the year, equipment was sold for $$24,000$ cash. This equipment cost $$56,000$ originally and

had a carrying amount of $$24,000$ at the time of sale.

Depreciation expense is included in operating expenses.

All sales and purchases are on account.

Accounts payable pertain to merchandise suppliers.

All operating expenses except for depreciation were paid in cash.

Instructions

Using the direct method, prepare a statement of cash flows for the year ended March $31,2023.$ Panda

uses ASPE.

Answer & Explanation Solved by verified expert

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