The income statement for Matt Smith, Ltd. is as follows: ...
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The income statement for Matt Smith, Ltd. is as follows: Matt Smith, Ltd. Income Statement December 31, 2020 Sales 3,750,000 Beginning Inventory 1,000,000 Purchases 2,000,000 Ending Inventory (500,000) Cost of Goods Sold (2,500,000) Gross Profit 1,250,000 Depreciation & Amortization 300,000 Wages Expense 200,000 Insurance Expense 100,000 Total Expenses (600,000) Income Before Taxes 650,000 Income Taxes (260,000) Net Income 390,000 Other information: Cash balance at 1/1/2020 258,125 Cash balance at 12/31/2020 774,375 Increase in Accounts Receivable 50,000 Increase in Preaid Insurance 60,000 Decrease in Accounts Payable 50,000 Increase in Wages Payable 30,000 Issued 10-year bonds payable 750,000 Purchased land 262,500 Purchased new machinery 450,000 Invested in a money market account 206,250 Declared dividends 375,000 Prepare a Statement of Cash Flows using the Indirect Method for Operating Cash Flows
| The income statement for Matt Smith, Ltd. is as follows: | ||
| Matt Smith, Ltd. | ||
| Income Statement | ||
| December 31, 2020 | ||
| Sales | 3,750,000 | |
| Beginning Inventory | 1,000,000 | |
| Purchases | 2,000,000 | |
| Ending Inventory | (500,000) | |
| Cost of Goods Sold | (2,500,000) | |
| Gross Profit | 1,250,000 | |
| Depreciation & Amortization | 300,000 | |
| Wages Expense | 200,000 | |
| Insurance Expense | 100,000 | |
| Total Expenses | (600,000) | |
| Income Before Taxes | 650,000 | |
| Income Taxes | (260,000) | |
| Net Income | 390,000 | |
| Other information: | ||
| Cash balance at 1/1/2020 | 258,125 | |
| Cash balance at 12/31/2020 | 774,375 | |
| Increase in Accounts Receivable | 50,000 | |
| Increase in Preaid Insurance | 60,000 | |
| Decrease in Accounts Payable | 50,000 | |
| Increase in Wages Payable | 30,000 | |
| Issued 10-year bonds payable | 750,000 | |
| Purchased land | 262,500 | |
| Purchased new machinery | 450,000 | |
| Invested in a money market account | 206,250 | |
| Declared dividends | 375,000 | |
| Prepare a Statement of Cash Flows using the Indirect Method for Operating Cash Flows |
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