Explore BrainMass

Income statement cash flow

The following is partial trail balance for the Green corporation as of Dec
Account Title Debit Credit
sales revenue 1,300,000
interest revenue 30,000
Gain on sale of equipment 50,000
cost of goods sold 720,000
salaries expense 160,000
depreciation expense 50,000
interest expense 40,000
rent expense 25,000
income tax expense 130,000

100,000 share of common stock were outstanding throughout 2009
1. prepare a single -step income statement for 2009 including EPS disclosures
2. prepare a multiple-step income statement for 2009 including EPS disclosures.

the trial balance sheet for Lindor corporation, manufacturing company, for the year ended Dec 31, 2009, included the following income accounts.
Account title
sales revenue 2,300,000

gain on litigation settlement (unusual and infrequent) 400,000
cost of goods sold 1,400,000
selling and administrative expense 420,000
interest expense 40,000
unrealized holding gains on investment securities 80,000
the trial balance does not include the accrual for income taxes. Lindor's income tax rate is 30% one million share of common stock were outstanding throughout 2009.
prepare a combined multiple -step statement of income and comprehensive income for 2009 including appropriate EPS disclosures.
for each of the follow transactions use classification categories
a) operating activities
b) investing activities
c) financing activity
d) noncash investing and financing activity
purchase of equipment for cash
payment of employee salaries
collection of cash from customers
cash proceeds from a note payable
purchase of common stock of another corporation for cash
issuance of common stock for cash
sale of machinery for cash
payment of interest on note payable in exchange for land and building
payment of cash dividends to shareholders
payment of principal on note payable

the following summary transactions occurred during 2009 for bluebonnet bakes:
cash received from:
customers 380,000
interest on note receivable 6,000
principal on note receivable 50,000
sale of investments 30,000
proceeds from note payable 100,000
cash paid for:

purchase of inventory 160,000
interest on note payable 5,000
salaries to employees 90,000
purchase of equipment 85,000
principal on note payable 25,000
payment of dividends to shareholder 20,000
the balance of cash and cash equivalents at the beginning of 2009 was 17,000.

© BrainMass Inc. brainmass.com June 22, 2018, 11:28 am ad1c9bdddf

Solution Summary

An income statement for cash flows is examined.