90.2K

Verified Solution

Link Copied!

Masterson Exercise Equipment, Inc. Income Statement Year Ended December 31, 2024 \begin{tabular}{lr} Net Sales Revenue & $14,000 \\ Cost of Goods Sold & 349,000 \\ \hline Gross Profit & 365,000 \end{tabular} Operating Expenses: \begin{tabular}{lrr} Depreciation Expense & $5,000 \\ & \\ Other Operating Expenses & 180.000 \\ & \\ Total Operating Expenses & 229,000 \\ Net Income & $136,000 \\ \hline \end{tabular} Masterson Exercise Equipment, Inc. Comparative Balance Sheet December 31, 2024 and 2023 2024 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory 81,00088,000 Long-term Assets: Plant Assets 264,900221,400 Accumulated Depreciation-Plant Assets (41,900)(33.400) Investments 95,000 \begin{tabular}{|lrrr|} \hline Investments & 95,000 & 75,000 \\ \hline Total Assets & $475,000 & $418,000 \\ \hline \end{tabular} Liabilities Current Liabilities: Accounts Payable Salaries Payable 78,000$3,50070,0005,500 Long-term Liabilities: Notes Payable Total Liabilities 144,50063,000142,50067,000 Stockholders' Equity Common Stock, no par Retained Earnings \begin{tabular}{rr} 47,000 & h31,000 \\ 283,500 & 244,500 \\ \hline \end{tabular} Liabilities Current Liabilities: Stockholders' Equity \begin{tabular}{lrrr} Common Stock, no par & 47.000 & 31.000 \\ Retained Earnings & 283.500 & 244,500 \\ \hline Total Stockholders' Equity & 330.500 & 275.500 \\ \hline Total Liabilities and Stockholders' Equity & 5 & 475,000 & 418,000 \\ \hline \end{tabular} Masterson calculated the following amounts for 2024 : - Acquisition value of plant assets, $84,000. - Payment of dividends, $97,000. - Payment of long-term notes payable, $4,000. - Cash receipt from issuance of common stock, $16,000. Masterson Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $40,500. No cash was received upon disposal. Prepare the company's statement of cash flows - indirect method-for the year ended December 31, 2024. Assume investments are purchased with cash. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Masterson Exercise Equipment, Inc. Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets Cash Payment for Investments Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Cash Payment of Dividends Cash Payment of Notes Payable Cash Receipt from Issuance of Common Stock Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, December 31, 2023 Cash Balance, December 31, 2024 Masterson Exercise Equipment, Inc. Income Statement Year Ended December 31, 2024 \begin{tabular}{lr} Net Sales Revenue & $14,000 \\ Cost of Goods Sold & 349,000 \\ \hline Gross Profit & 365,000 \end{tabular} Operating Expenses: \begin{tabular}{lrr} Depreciation Expense & $5,000 \\ & \\ Other Operating Expenses & 180.000 \\ & \\ Total Operating Expenses & 229,000 \\ Net Income & $136,000 \\ \hline \end{tabular} Masterson Exercise Equipment, Inc. Comparative Balance Sheet December 31, 2024 and 2023 2024 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory 81,00088,000 Long-term Assets: Plant Assets 264,900221,400 Accumulated Depreciation-Plant Assets (41,900)(33.400) Investments 95,000 \begin{tabular}{|lrrr|} \hline Investments & 95,000 & 75,000 \\ \hline Total Assets & $475,000 & $418,000 \\ \hline \end{tabular} Liabilities Current Liabilities: Accounts Payable Salaries Payable 78,000$3,50070,0005,500 Long-term Liabilities: Notes Payable Total Liabilities 144,50063,000142,50067,000 Stockholders' Equity Common Stock, no par Retained Earnings \begin{tabular}{rr} 47,000 & h31,000 \\ 283,500 & 244,500 \\ \hline \end{tabular} Liabilities Current Liabilities: Stockholders' Equity \begin{tabular}{lrrr} Common Stock, no par & 47.000 & 31.000 \\ Retained Earnings & 283.500 & 244,500 \\ \hline Total Stockholders' Equity & 330.500 & 275.500 \\ \hline Total Liabilities and Stockholders' Equity & 5 & 475,000 & 418,000 \\ \hline \end{tabular} Masterson calculated the following amounts for 2024 : - Acquisition value of plant assets, $84,000. - Payment of dividends, $97,000. - Payment of long-term notes payable, $4,000. - Cash receipt from issuance of common stock, $16,000. Masterson Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $40,500. No cash was received upon disposal. Prepare the company's statement of cash flows - indirect method-for the year ended December 31, 2024. Assume investments are purchased with cash. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Masterson Exercise Equipment, Inc. Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets Cash Payment for Investments Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Cash Payment of Dividends Cash Payment of Notes Payable Cash Receipt from Issuance of Common Stock Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, December 31, 2023 Cash Balance, December 31, 2024

Answer & Explanation Solved by verified expert

See Answer