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Time,Inc_Statement of Cash Flows

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Question;Time,Inc.;Income Statement;FortheYearEndedDecember31;2014;Sales;450,000;Costof;GoodsSold 300,000;GrossMargin;150,000;Less;Operating;Expenses 60,000;DepreciationExpense;17,000;IncomeTaxes 20,000;InterestExpense;Loss;onsaleofplantassets;NetIncome;18,000;3,000 118,000;32,000;1. Thecomparativebalancesheets forTime Companyappearbelow;Time,Inc.Comparative;BalanceSheets December 31;Assets 2014 2013;Cash;41,000 35,000;AccountsReceivable 75,000 53,000;Inventories 120,000 132,000;PrepaidExpenses 19,000 25,000;Investments 100,000 75,000;Plant assets 325,000 250,000;AccumulatedDepreciation;TotalAssets;(65,000) (60,000);615,000 510,000;Liabilities&Equity;AccountsPayable 93,000 75,000;AccruedExpenses 29,000 24,000;BondsPayable 120,000 160,000;CommonStock 275,000 170,000;RetainedEarnings;TotalLiabilities &Equity;98,000 81,000;615,000 510,000;Additional information;1. Newplantassetscosting$100,000 werepurchasedwithcash.;2.;Investmentswerepurchasedwithcash.;3.;Oldplantassetscosting$25,000 andwithabookvalueof$13,000;weresoldfor$10,000 cash.;4.;Bonds with;afacevalueof$40,000;wereconvertedinto$40,000 parvalueofcommonstock.;5.;Commonstockwasissuedforcash.;6.;Acashdividendof$15,000;was;declaredandpaidduringtheyear.;Required;Prepareastatementofcash?owsfortheyearusingtheindirectmethod.

 

Paper#44596 | Written in 18-Jul-2015

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