4. Presented below are the financial statements of Bonita Industries.
Bonita Industries |
||||||
Assets |
|
2017 |
|
|
2016 |
|
Cash |
|
$ 40,600 |
|
|
$ 23,200 |
|
Accounts receivable |
|
23,200 |
|
|
16,240 |
|
Inventory |
|
32,480 |
|
|
23,200 |
|
Property, plant, and equipment |
|
69,600 |
|
|
90,480 |
|
Accumulated depreciation |
|
(37,120 |
) |
|
(27,840 |
) |
Total |
|
$128,760 |
|
|
$125,280 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Accounts payable |
|
$ 22,040 |
|
|
$ 17,400 |
|
Income taxes payable |
|
8,120 |
|
|
9,280 |
|
Bonds payable |
|
19,720 |
|
|
38,280 |
|
Common stock |
|
20,880 |
|
|
16,240 |
|
Retained earnings |
|
58,000 |
|
|
44,080 |
|
Total |
|
$128,760 |
|
|
$125,280 |
|
Bonita Industries |
||||
Sales revenue |
|
|
|
$280,720 |
Cost of goods sold |
|
|
|
203,000 |
Gross profit |
|
|
|
77,720 |
Selling expenses |
|
$20,880 |
|
|
Administrative expenses |
|
6,960 |
|
27,840 |
Income from operations |
|
|
|
49,880 |
Interest expense |
|
|
|
3,480 |
Income before income taxes |
|
|
|
46,400 |
Income tax expense |
|
|
|
9,280 |
Net income |
|
|
|
$ 37,120 |
Additional data:
1. |
|
Depreciation expense was $20,300. |
2. |
|
Dividends declared and paid were $23,200. |
3. |
|
During the year equipment was sold for $9,860 cash. This equipment cost $20,880 originally and had accumulated depreciation of $11,020 at the time of sale. |
Prepare a statement of cash flows using the indirect method.
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