ACC201 -Principles of Accounting T3.2022
TUTORIAL TEST 10
The Balance Sheet and Income Statement for Oceanami are shown below:
Comparative Balance Sheet
December 31
Assets
2021
2020
Cash
$182,000
$187,000
Accounts receivable
83,000
95,000
Inventories
121,000
138,000
Prepaid rent
7,000
5,000
Long term investment
195,000
100,000
Land
230,000
260,000
Equipment
350,000
225,000
Accumulated depreciation, equipment
(138,000)
(100,000)
Totul assets
$985,000
$910.000
Liabilities and Stockholders' Equity
Accounts payable
$40,000
$58,000
Interest payable
1,000
2,000
Income tax payable
12,000
10,000
Notes payable
285,000
205,000
Common stock
350,000
350,000
Retained earnings
297,000
285,000
Total liabilities and stockholders' equity
$985,000
$910,000
Income Statement
For the Year Ended December 31, 2021
Revenues (including gains)
$2,804,000
Cost of goods sold
$1,900,000
Depreciation expense
38,000
Interest expense
16,000
Income tax expense
63,000
Operating expenses
575,000
2,592,000
Net income
$212,000
The following additional information relates to 2021:
a)
Dividends were declared and paid in cash.
b)
Sold Land for $34,000, originally cost $30,000.
c)
Acquiring an equipment cost $80,000 by issuing a three-year notes.
d)
Purchase additional long-term investment for $95,000.
Required:
Prepare the statement of cash flows for Oceanami Company for 2021 using the indirect
method.