Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. prepare a statement of cash flow for fred's firewo

Prepare a Statement of Cash Flow for Fred's Fireworks, Inc. using indirect method. Use the...

60.1K

Verified Solution

Question

Accounting

image

Prepare a Statement of Cash Flow for Fred's Fireworks, Inc. using indirect method. Use the information from the statement to answer the questions Fred's Fireworks, Inc. Balance Sheet As of December 31, 2018 Assets 2018 2017 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation 207,000 31,750 55,000 670,000 (275,000) 280,000) 195,000 34,000 60,700 700,000 Total Assets 714,700 683,750 Liabilities and Equity 33,900 25,000 Accounts Payable Taxes Payable Note Payable Equipment Common Stock Retained Earnings 35,070 250 30,000 300,000 349,380 300,000 324,850 Total Liabilities and Equity 714,700 683,750 Fred's Fireworks, Inc. Income Statemnet For the Year Ending December 31 2018 Sales Revenue Cost of Goods Sold Gross profit 500,000 (290,780) 209,220 Advertising Expense Salary Expense Interest Expense Depreciation Expense Total Expenses Operating Income 35,000 75,000 5,000 15,000 130,000 79,220 15,000 (22,000) Gain on Sale of Equipm Income Tax Expense Income from Continuing Operations 72,220 *Equipment with an original cost of $50,000 and 40% depreciated was sold All sales are made on account

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