Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Use the following data for Hines Music Company to prepare a statement of cash flows using

Use the following data for Hines Music Company to prepare a statement of cash flows using

Use the following data for Hines Music Company to prepare a statement of cash flows using the indirect method for the year ended June 30, 20x8.

 

Hines Music Company

Income Statement

For the Year Ended June 30, 20x8

Sales

$700,000

Less expenses

 

Cost of goods sold

$400,000

 

 

Depreciation expense

40,000

 

 

Administrative expenses

104,000

 

 

Selling expenses

70,000

 

 

Loss on sale of investment

          1,000

   615,000

Income before income taxes

$  85,000

Income taxes expense

    20,000

Net income

 

$  65,000

           

 

Hines Music Company

Comparative Balance Sheets

June 30, 20x8 and 20x7

Assets

        20x8

        20x7

Cash

$   9,000

$  30,000

Accounts receivable (net)

70,000

55,000

Inventory

80,000

100,000

Prepaid expenses

6,000

5,000

Long-term investments

40,000

50,000

Plant and equipment

160,000

80,000

Accumulated depreciation

  (40,000)

  (24,000)

Total assets

$325,000

$296,000

Liabilities

 

 

Accounts payable

$   4,000

$  12,000

Wages payable

440

520

Income taxes payable

1,560

1,480

Notes payable

    40,000

    24,000

Total liabilities

$ 46,000

$  38,000

 

 

 

Stockholders' Equity

 

 

Common stock

   $116,000

$130,000

Retained earnings

   163,000

   128,000

Total stockholders' equity

$279,000

$258,000

Total liabilities and stockholders' equity

$325,000

$296,000

     

 

Additional information:

A plant asset costing $40,000 was sold for its book value of $16,000.

A long-term investment was sold for $9,000.

The outstanding notes are long-term. A $16,000 note was issued during 20x8.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hines Music Company

Statement of Cash Flows

For the Year Ended June 30, 20x8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 11 2019 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions