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Homework answers / question archive / The income statement, balance sheet, and additional information for Virtual Gaming Systems are provided
The income statement, balance sheet, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMSIncome StatementFor the Year Ended December 31, 2015 Net sales$2,480,000 Gain on sale of land4,000 Total revenues2,484,000 Expenses: Cost of goods sold$ 1,590,000 Operating expenses603,000 Depreciation expense21,000 Interest expense22,000 Income tax expense68,000 Total expenses2,304,000 Net income$180,000 VIRTUAL GAMING SYSTEMSBalance SheetDecember 3120152014 Assets Current assets: Cash$183,520 $127,640 Accounts receivable73,200 88,000 Inventory142,000 133,000 Prepaid rent3,280 5,160 Long-term assets: Investments183,000 100,000 Land209,000 258,000 Equipment226,000 208,000 Accumulated depreciation(125,000) (104,000) Total assets$895,000 $815,800 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$29,000 $86,000 Interest payable3,800 2,800 Income tax payable27,200 30,000 Long-term liabilities: Notes payable255,000 237,000 Stockholders’ equity: Common stock328,000 280,000 Retained earnings252,000 180,000 Total liabilities and stockholders’ equity$895,000 $815,800 Additional Information for 2015:1.Purchase additional investment in stocks for $83,000.2.Sell land costing $49,000 for $53,000, resulting in a $4,000 gain on sale of land.3.Purchase $18,000 in equipment by borrowing $18,000 with a note payable due in three years. No cash is exchanged in the transaction.4.Declare and pay a cash dividend of $108,000.5.Issue common stock for $48,000. Required:Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.)
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