Acc280 Financial Accounting: E14-11 Marisol Corporation's income statement

Acc280 Financial Accounting
E14-11 Preparing the statement of cash flows indirect method:
Marisol corporations income statement for the year ended June 30, 20x9 and its comparative balance sheets for june 30, 20x9 and 20x8 appear on the opposite page.
Marisol Corporation
Income Statement
For the Year Ended June 30, 20x9
Sales 234,000
Cost of goods sold 156,000
Gross margin 78,000
Operating expenses 45,000
Operating income 33,000
Interest expense 2,800
Income before income taxes 30,200
Income taxes expense 12,300
Net Income 17,900

Marisol Corporation
Income Statement
June 30, 20x9 and 20x8
20x9 20x8
Assets
Cash 69,900 12,500
Accounts receivable (net) 21,000 26,000
Inventory 43,400 48,400
Prepaid expenses 3,200 2,600
Furniture 55,000 60,000
Accumulated depreciation, furniture (9,000) (5,000)
Total Assets 183,500 144,500

Liabilities & Stockholders' Equity
Accounts payable 13,000 14,000
Income taxes payable 1,200 1,800
Notes payable (long-term) 37,000 35,000
Common stock, $10 par value 115,000 90,000
Retained earnings 17,300 3,700
Total Liabilities & Stockholders' Equity 183,500 144,500

Marisol issued a $22,000 note payable for purchase of furniture; sold furniture that cost $27,000 with accumulated depreciation of $15,300 at carrying value; recorded depreciation on the furniture for the year, $19,300; repaid a note in the amount of $20,000; issued $25,000 of common stock at par value; and paid dividends of $4,300.

Prepare Marisol's statement of cash flows for the year 20x9 using the indirect method.
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