The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 2024 2023 Assets Current assets: Cash $144,850 $156,500 Accounts receivable 76,400 90,000 Inventory 91,000 76,400 Prepaid rent 3,200 1,600 Long-term assets: Land 460,000 460,000 Equipment 756,000 650,000 Accumulated depreciation (418,000) (260,000) Total assets $1,113,450 $1,174,500 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $95,000 $81,400 Interest payable 6,750 13,500 Income tax payable 7,200 4,600 Long-term liabilities: Notes payable 112,500 225,000 Stockholders' equity: Common stock 680,000 680,000 Retained earnings 212,000 170,000 Total liabilities and stockholders' equity $1,113,450 $1,174,500 Additional Information for 2024: Net income is $65,000. The company purchases $106,000 in equipment. No equipment was sold. Depreciation expense is $158,000. The company repays $112,500 in notes payable. The company declares and pays a cash dividend of $23,000.
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 2024 2023 Assets Current assets: Cash $144,850 $156,500 Accounts receivable 76,400 90,000 Inventory 91,000 76,400 Prepaid rent 3,200 1,600 Long-term assets: Land 460,000 460,000 Equipment 756,000 650,000 Accumulated depreciation (418,000) (260,000) Total assets $1,113,450 $1,174,500 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $95,000 $81,400 Interest payable 6,750 13,500 Income tax payable 7,200 4,600 Long-term liabilities: Notes payable 112,500 225,000 Stockholders' equity: Common stock 680,000 680,000 Retained earnings 212,000 170,000 Total liabilities and stockholders' equity $1,113,450 $1,174,500 Additional Information for 2024: Net income is $65,000. The company purchases $106,000 in equipment. No equipment was sold. Depreciation expense is $158,000. The company repays $112,500 in notes payable. The company declares and pays a cash dividend of $23,000.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 20MC: Which of the following is a measurement of earnings that represents the profit before interest,...
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Question
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
| PLASMA SCREENS CORPORATION | ||
| Balance Sheets | ||
| December 31, 2024 and 2023 | ||
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash | $144,850 | $156,500 |
| Accounts receivable | 76,400 | 90,000 |
| Inventory | 91,000 | 76,400 |
| Prepaid rent | 3,200 | 1,600 |
| Long-term assets: | ||
| Land | 460,000 | 460,000 |
| Equipment | 756,000 | 650,000 |
| (418,000) | (260,000) | |
| Total assets | $1,113,450 | $1,174,500 |
| Liabilities and |
||
| Current liabilities: | ||
| Accounts payable | $95,000 | $81,400 |
| Interest payable | 6,750 | 13,500 |
| Income tax payable | 7,200 | 4,600 |
| Long-term liabilities: | ||
| Notes payable | 112,500 | 225,000 |
| Stockholders' equity: | ||
| Common stock | 680,000 | 680,000 |
| Retained earnings | 212,000 | 170,000 |
| Total liabilities and stockholders' equity | $1,113,450 | $1,174,500 |
Additional Information for 2024:
- Net income is $65,000.
- The company purchases $106,000 in equipment. No equipment was sold.
- Depreciation expense is $158,000.
- The company repays $112,500 in notes payable.
- The company declares and pays a cash dividend of $23,000.
Required:
Prepare the statement of cash flows using the indirect method. (Amounts to be deducted,
Transcribed Image Text:Assets
Current assets:
Cash
Accounts receivable
Inventory
Prepaid rent
Long-term assets:
Land
Equipment
Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable.
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity
2024
4. The company repays $112,500 in notes payable.
5. The company declares and pays a cash dividend of $23,000.
$144,850
76,400
91,000
3,200
460,000
756,000
(418,000)
$1,113,450
$95,000
6,750
7,200
112,500
680,000
212,000
$1,113,450
Additional Information for 2024:
1. Net income is $65,000.
2. The company purchases $106,000 in equipment. No equipment was sold.
3. Depreciation expense is $158,000.
2023
$156,500
90,000
76,400
1,600
460,000
650,000
(260,000)
$1,174,500
$81,400
13,500
4,600
225,000
680,000
170,000
$1,174,500
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.)
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