NOLA
Income Statement
For Year Ended December 31, 1019
Sales $700,000
Cost of Goods Sold $440,000
Gross Margin $260,000
Wages and Other Operating Expenses $95,000
Depreciation Expenses $22,000
Amortization Expense of Patent $7,000
Interest Expense $10,000
Income Tax Expense $36,000
Total Expenses $170,000
Net Income from Operations Before Taxes $90,000
Loss on the Bond Retirement <$5,000
Net Income $85,000
NOLA Balance Sheet
Dec. 31, 201 XXXXXXXXXXDec. 31, 2018
ASSETS
Cash $25,000 $18,000
Accounts Receivable $53,000 $48,000
Inventory $103,000 $109,000
Prepaid Expenses $12,000 $10,000
Plant Assets $360,000 $336,000
Accumulated Depr. ($87,000) ($84,000)
Intangible – Patent $43,000 $50,000
Total Assets $509,000 $487,000
LIABILITIES & SHAREHOLDER EQUITY
Accounts Payable $32,000 $26,000
Interest Payable $4,000 $7,000
Income Tax Payable $6,000 $8,000
Bonds Payable $60,000 $120,000
Common Stock $252,000 $228,000
Retained Earnings $155,000 $98,000
Total Liabilities & Equity $509,000 $487,000
During 2019 NOLA sold for $17,000 cash old equipment that had cost $36,000 and had $19,000 accumulated depreciation. Also in 2019, new equipment worth $60,000 was acquired in exchange for $60,000 of bonds payable. This later event is considered to be a non- cash exchange. Bonds payable of $120,000 were retired for cash at a loss of $5,000. A cash dividend was paid because there is dividend payable on the Dec. 31, 2019 balance sheet provided by NOLA.
NOLA forgot to list the total amount of the dividend but you should be able to determine the dollar amount of dividends paid by the information provided in the financial statement. Finally any stock issuances were for cash.
Prepare in good order a Cash Funds Flow Statement for year ending December 31, 2019.