70.2K

Verified Solution

Link Copied!

PLEASE DO BOTH PICTURES THANK YOU

Use the following financial statements and additional information to (1) prepare a statement of cash flows for the year ended December 31, 2019 using the indirect method (2) compute the company's cash flow on total assets ratio for 2019 Ironman Company Balance Sheets At December 31 2019 2018 S492.000 $69.800 69.650 159.645 9660 265.600 85.600) S488.255 $56,400 56,750 154,850 13.680 245,600 ..27.60 5429.60 Ironman Company Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold $232.540 Depreciation expense 48.000 Other operating expenses 108,280 Interest expertise 6.SOK Net operating income Other gains (losses) Gain on sale of equipment Income before takes Income taxes expense Net income 395.120 96,680 7,200 103,880 35.355 68.52 Assets Cash Accounts receivable.net Merchandise inventory Prepaid expenses Equipment Accumulated depreciation Equipment Total assets Liabilities Accounts payable Income taxes payable Notes payable (longtem Total liabilities Equity Common stock Pakt-in capital in excess of par Retained caminys Total equity Total liabilities and equity Additional Information: $39.610 17.400 50.000 SIO7040 $45,450 12,240 75.000 $112,690 200,000 48.000 132.215 SESIAS S188.255 150,000 40,000 10.800 $24.990 $429.6.80 A $25,000 note payable is retired at its carrying valuc in exchange for cash, b. The only changes affecting retained carnings are net income and cash dividends paid. c. New equipment is acquired for $120,000 cash. 4. Received cash for the sale of equipment that had cost $100.000, yielding again of S7,200 c. Prepaid expenses relate to Other Expenses on the income statement f. All purchases and sales of merchandise inventory are on credit, a. A $25,000 note payable is retired at its carrying value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $120,000 cash. d. Received cash for the sale of equipment that had cost $100,000, yielding a gain of S7,200. e. Prepaid expenses relate to Other Expenses on the income statement f. All purchases and sales of merchandise inventory are on credit. Ironman Company Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2019 %

Answer & Explanation Solved by verified expert

See Answer