90.2K

Verified Solution

Link Copied!

The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:

PLASMA SCREENS CORPORATION

Balance Sheets

December $31,2024$ and $2023$

$20242023$

Assets

Current assets:

Cash $$116,500$ $$136,800$

Accounts receivable $80,40095,000$

Inventory $101,00085,400$

Prepaid rent $5,2002,600$

Long$-$term assets:

Land $510,000510,000$

Equipment $814,000700,000$

Accumulated depreciation $(434,000)(280,000)$

Total assets $$1,193,100$ $$1,249,800$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $$105,000$ $$90,400$

Interest payable $6,90013,800$

Income tax payable $9,2005,600$

Long$-$term liabilities:

Notes payable $115,000230,000$

Stockholders' equity:

Common stock $730,000730,000$

Retained earnings $227,000180,000$

Total liabilities and stockholders' equity $$1,193,100$ $$1,249,800$

Additional Information for $2024$:

Net income is $$75,000.$

The company purchases $$114,000$ in equipment. No equipment was sold.

Depreciation expense is $$154,000.$

The company repays $$115,000$ in notes payable.

The company declares and pays a cash dividend of $$28,000.$

Required:

Prepare the statement of cash flows using the indirect method. $($Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.$)$

Answer & Explanation Solved by verified expert

See Answer