80.2K

Verified Solution

Link Copied!

The James Logan Corporation reported the following Income Statement and comparative Balance Sheet for 2016 and 2015, along with transaction data for 2016: JAMES LOGAN CORPORATION Income Statement Year Ended December 31, 2016 Sales revenue $ 662,000 Cost of goods sold 560,000 Gross profit 102,000 Operating expenses: Salary expense $46,000 Depreciation expense 10,000 Rent expense 2,200 Total operating expenses 58,000 Income from operations 44,000 Other items: Loss on sale of equipment (2,000) Income before income tax 42,000 Income tax expense 16,000 Net income $ 26,000 JAMES LOGAN CORPORATION Balance Sheet December 31, 2016 and 2015 Assets 2016 2015 Liabilities 2016 2015 Current: Current: Cash and equivalents $ 22,000 $ 3,000 Accounts payable $ 35,000 $ 26,000 Accounts receivable 22,000 23,000 Accrued liabilities 7,000 9,000 Inventories 35,000 34,000 Income tax payable 10,000 10,000 Total current assets 79,000 60,000 Total current liabilities 52,000 45,000 Equipment, net 126,000 72,000 Bonds payable 84,000 53,000 Stockholders Equity Common stock 52,000 20,000 Retained earnings 27,000 19,000 Less: Treasury stock (10,000) (5,000) Total assets $205,000 $ 132,000 Total liabilities and equity $205,000 $ 132,000 The following additional information about James Logan Corporation during 2016: Purchase of treasury stock.............................................................................. $ 5,000 Cash receipt from sale of equipment (book value, $76,000).......................... 74,000 Cash receipt from issuance of common stock................................................ 19,000 Issuance of bonds payable to borrow cash..................................................... 44,000 Issuance of common stock to retire bonds payable........................................ 13,000 Payment of dividends..................................................................................... 18,000 Purchase of equipment................................................................................... 140,000 Required: Using the indirect method, prepare the statement of cash flows for James Logan Corporation. Include supporting schedule of noncash investing transactions and financing transactions.

Answer & Explanation Solved by verified expert

See Answer