Question - Wilma Company had the following information available at the end of 2018:
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Income Statement For Year Ended December 31, 2018
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Sales
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441,000
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Cost of Goods Sold
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205,200
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Gross Profit
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235,800
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Operating Expenses:
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Depreciation
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14,800
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Salaries
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79,400
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Insurance
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10,300
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Utilities
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11,900
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Total Operating Expenses
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116,400
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Operating Income
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119,400
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Other Expenses/Losses:
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Gain on Sale of Equipment
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4,500
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Interest Expense
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6,400
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(1,900)
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Income Before Taxes
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117,500
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Income Tax Expense
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19,900
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Net Income
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97,600
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The following additional information is available:
a. Investments costing $38,000 were purchased for cash.
b. Equipment costing $20,000 with accumulated depreciation of $2,300 was sold for $22,200 cash.
c. Equipment costing $90,000 was purchased--$60,000 cash was paid and a $30,000 long-term promissory note was signed for the balance due.
d. A cash dividend of $45,000 was declared and paid to shareholders during the year.
e. $1,000 of the long-tern note payable was paid.
f. 5,000 shares of $1-par value common stock were issued for $3 per share cash.
g. Land costing $24,700 was sold for $24,700 cash.
REQUIRED:
A. Complete a set of cash flow T-accounts using the indirect method of computing cash flows from operations.
B. Complete a set of cash flow T-accounts using the direct method of computing cash flows from operations.
Attachment:- Assignment.rar