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The income statement, balance sheet, and additional information for

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The income statement, balance sheet, and additional
information for Video Phones, Inc., are provided.
The income statement, balance sheet, and additional
information for Video Phones, Inc., are provided.
Solution
Working Notes Accounts Receivables
opening Balance 65000 Add: Sales for the year
3386000 less closing balalnce 86500 Cash recd from
customers 3364500 Inventories Opening balance
140000 Add: purchases (bal fig) 2165000 Less: COGS
2200000 closing balance 105000 Equipment
Opening balance 215000 Add: purchases 65000
Less: closing balance 280000 Accounts Payables
opening balance 86000 Purchases 2165000 Less:
Payment to suppliers (bal fig) 2180500 closing balance
70500 Income Tax opening balance 14500
Income tax 53000 Lesss: Income tax paid 52000
closing balance 15500 Interest a/c opening
balance 11000 Interest a/c 17500 Lesss: Interest paid
22000 closing balance 6500 Video Phones, Inc
Statement of Cash Flows For the Year Ending
Cash at Beginning of Year 185,900 185900

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Operations Cash receipts from customers
3,364,500 Cash paid for Inventory purchases
2,180,500 General operating and administrative
expenses 908,000 Prepaid rent (13200-6600)
6,600 Interest 22,000 Income
taxes 52,000 3,169,100 Net Cash
Flow from Operations 195,400 Investing Activities
Cash receipts from Sale of property and equipment
26,500 Cash paid for Purchase of
investment securities 110,000 (83,500)
Net Cash Flow from Investing Activities Financing
Activities Cash paid for Dividends
27,500 Net Cash Flow from Financing Activities
(27,500) Net Increase in Cash Cash at End
of Year 270,300 Note on Non cash expenses
Depreciation 32000 Loss on sale of land 8500 Purchase
of equipment by issuing notes payable in 3 years 65000
Reconciliation Net Income as per income statement
167000 Add: Non cash expenses Depreciation 32000
Loss on sale of land 8500 Decrease in inventory 35000
Increase in Income Tax payable 1000 76500 243500
Less: Increase in Accounts receivables 21500
Increase in Prepaid rent 6600 Decrease in Accounts
Payable 15500 Decrease in interest payable 4500 48100
Net cash flow from operating activities 195400

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The income statement, balance sheet, and additional information for Video Phones, Inc., are provided. The income statement, balance sheet, and additional information for Video Phones, Inc., are provided. Solution Working Notes opening Balance 3386000 65000 Add: Sales for the year less closing balalnce customers 140000 Accounts Receivables 3364500 closing balance Opening balance 215000 Less: closing balance opening balance 53000 Add: purchases 65000 Accounts Payables 2165000 2180500 Less: closing balance opening balance 14500 Lesss: Income tax paid 52000 closing balance 15500 balance Interest a/c 11000 Less: COGS Equipment Purchases Income Tax Income tax 2165000 280000 86000 Opening balance 105000 Payment to suppliers (bal fig) 70500 Cash recd from Inventories Add: purchases (bal fig) 2200000 22000 86500 closing balance Interest a/c 6500 St ...
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