beg, equrry vel Coga Quer sort. pw wee wid helt, beg. emu red wt pw. werd, 56000 - 400 4 AS 09 -400 18600 434429 4a4USG6 Gees areow. ULNMWa. reer end. eos *y 129 904 Oiseed cask Rou CCD £00 = ORs 40 oe oe 6° a Fdee WA OO ae wo uo cax k Ror 400 (©D Ren + fo a CO hep. 7 +20 ned ome YD wed can {20 Gore carl, aetO = x — AL E a x pana Lucas Corporation Year Ended fi Income Statement December 31, 20X7 2 Sales revenue $ 662,000 3 Cost of goods sold 560,000 4__ Gross profit 102,000 ‘Operating expenses 6 __ Salary expenses $ 46,000, 7_| _ Depreciation expense—equipment 00. | _ Amortization expense—patent 3,000 9 Rent expense 2,000. 10 Total operating expenses 58,000 11 | Income from operations x 12 | Other items: 13) _ Loss on sale of equipment (2,000) 14 | Income before income tax 42,000 15 | Income tax expense 16,000 16 | Net income 26,000 17 AL 2] x [a Ce D eas ae Lucas Corporation Comparative Balance Sheets | December31 2 Assets 20x7 | 20x6 Liabilities 2x7 20x6 3 Cu Current: ‘Cash and cash 4K equivalents 19, Q Accounts payable __$ 35,000 § 26,000 5 counts receivable —22000 23.000 ‘Accrued liabilities 7,000 | 9,000 6 |_ Inventories 34,000) 31, Income tax payable 10,000 | 10,000 Total current 7 | __ Prepaid expenses 1,000, 3,000 liabilities 52,000 | 45,000 8 Total current assets | 76,000 a note payable 44,000 | =| 9 Long-term investments 18,000 10,000 ' Bonds payable ‘40,000 | 53,000 10 | Equipment, net |67,000 52,000, Owners’ Equity 11 Patent, net ‘44,000 10,000) Share capital 52,000 | 20000 12 I Retained earings 27,000 | 19,000 3 Less: Treasury shares (10,000) | (6,000) Total liabilities and 16 [Total assets $ 205,000 $ 132,000, equity 15 Pesaencesce nesters “Transaction Data for 20X7: Purchase of equipment... Payment of cash dividend Issuance of shares to retice payable Purchase of long-term investment. Pasion eden Issuance of long-term note payablePrepare Lucas Corporation's statement of cash flows (indirect method) for the year ended December 31, 20X7. Follow the four steps outlined below. For Step 4, prepare a T-account to show the transaction activity in each long-term Balance Sheet account. For each PPE, use a single account, net of accumulated depreciation (for example: Equipment, Net) Step 1 Lay out the template of the statement of cash flows. Step 2 From the comparative Balance Sheet, determine the increase in cash during the year, $16,000. Step 3 From the Income Statement, take net income, depreciation, amortization, and the loss on sale of equipment to the statement of cash flows. Step 4 Complete the statement of cash flows. Account for the year-to-year change in each Balance Sheet account. soar low stolen Operating arhivti es Nel: pene 26 000 dopieiahor + £0900 Lote ou calle + 2000 y ALR 44000 A woud Y prep: cxf. h A(P 48000 4) outued bal Pao © i a i Le Nrhy» | DOCO + (L000Net coh grow he 4 ‘| Lessin gedivit eX prc here lore of equipuenl -@ 8000 ua Woaxe of L-7, tw. 000) cale of equip 44000 : ah From TA. - 38000 eee aofivities aa div -t% 000 Purchase of tt ee -5000 ‘J esuasug BE ule DOD) T esate ok ahwied 43 OOo Ne4 cash dam Fd. 3000. an “ in car {L000 = =zy x Saas see Newbury Travel Products, Inc. Year Ended ‘ Income Statement December 31, 20X6 2 | Revenues: 3 Service revenue $283,000 4 Dividend revenue 8,000 | $ 291,000) 5 | Expenses: 6 | _ Cost of goods sold 103,000, 7 | Salary expense 78,000 8 | Depreciation expense v 26,000 9 | Advertising expense 4,500 10 Interest expense 11 Income tax expense 12 Net income a. Acquisition of PPE was $222,000. Of this amount, $170,000 was paid in cash and {$52,000 by signing a note payable. b. Proceeds from sale of land totaled $28,000. ‘c. Proceeds from issuance of shares totaled $90,000. d. Payment of a long-term note payable was $18,000. e. Payment of dividends was $13,000. Al Fi zx Te ae i December 31 2 20X6 20Xx5 3 Current assets: 4 Cash 5 Accounts receivable 6 | Inventory 7 Prepaid expenses 8 9 Current liabilities: 10 Accounts payable 11 Accrued liabilities 2 cach fbx slate meu Dyeing acdivikier +68800y goornd cho: ~ 400 KR Al? + 44000 i geinsoel Cdl. — ${000 Ved cosh Som O8. {0.2200 Liwerhng acd id i.09 puchare of PDE _ 440000 say of Conl 42%000 Med cosh fom Th = 2AUZLOOO AULODOO_ f, yal pa \ Wied CL ssupale of chased 4+ 30000 payruuk of UP _ £3000 poyiweuk of div. _ {2000 eA cosh Stom Ek. $3000 _ Net change w ok £9 100”Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Current liabilities: ‘Accounts payable ‘Accrued liabilities Income tax payable iz zi 3 4 = 6 7 8 9 Acquisition of land Sale of long-term investment $12,700 by issuing note payabl $100,000 Depreciation expense 15,700 Amortization expense. 9,000 Cash purchase of building 44,000 Payment of cash dividend... 29, Net income... 54,000 Cash purchase of Issuance of share for cash 24,000 equipment 79,000 Dividend Issuance of long-term note payable to borrow cash... 42,000 Canh Pesus a ey Opeta a achivid ed od ea 4 54000 m0) “00 bat 4 454 00) k ‘oud or-29, — 4600 ¥ Renee exp + 4300j ‘h IP + 400 h oxi Liab, 490500 y tox payable — (200 Net cosh Son Oh. 2600 Twesti activities, Puichose of osyuipnot - $3000 Sale of werd maul +49 400 Pi chare of Gui Bl —4LO00 Net cash dow ER MO 00 _ Game antivition Q pol o& aliv, 13000 Jesuawe o& NIP + 44000 Tasuangy of shoe + 24000 al eT AG NOMUM Cosle CLAS IN Che Be Sea ape —_——_—— Ned chawge sn cath 53 2000