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The comparative balance sheets and income statements for Gypsy Company follow Income Statement For the Year Ended December 31 2017 Sales revenue

The comparative balance sheets and income statements for Gypsy Company follow: Income Statement For the Year Ended December 31, 2017 Sales revenue.................................... $ 61,200 Cost of goods sold.............................. (24,500) Gross margin....................................... 36,700 Depreciation expense........................... (12,000) Operating income................................. 24,700 Gain on sale of equipment........................ 1,500 Loss on disposal of land........................... (100) Net income...................................... $ 26,100 Additional Data 1. During 2017, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. Also, the company purchased equipment for $29,000 cash. 2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange. 3. Paid dividends of $12,400. Required Prepare a statement of cash flows using the indirect method.

Apr 12 2020 Read more Less More

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