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Income Statement
Year Ended Ended June 30, 2020Description Amount Total Sales Revenue 226,000 Cost of Goods Sold 108,000Single line Gross Profit Single line118,000 Subcategory,Operating Expenses: Salaries Expense 49,000 Advertising Expense 12,000 Depreciation Expense-Plant Assets 28,000Single line Single line Total Operating Expenses Single line89,000Single line Income From Operations Single line29,000 Subcategory,Other Income (Expenses) Dividend Revenue 10,600 Interest Expense -3,200Single line Single line Total Other Income (Expenses) Single line7,400Single line Net Income Before Income Taxes Single line36,400 Income Tax Expense 9,000Single line Net Income Single line27,400
a) Collections from customers are $15,000 more than sales.
b) Dividend revenue, interest expense, and income tax expense equal their cash amounts.
c) Payments to suppliers are the sum of cost of goods sold plus advertising expense.
d) Payments to employees are $1,300 more than salaries expense.
e) Cash payment for the acquisition of plant assets is $109,000.
f) Cash receipts from sale of land total $28,000.
g) Cash receipts from issuance of common stock total $34,000.
h) Payment of long-term notes payable is $19,000.
i) Payment of dividends is $14,000.
j) Cash balance at June 30, 2019, was $26,000; at June 30, 2020, it was $25,000.
Prepare Enola Enterprises statement of cash flows for the year ended June 30, 2020, using the direct method.
Statement of Cash Flows - Direct Method
For Year Ending June 30, 2020Description Amount Total Subcategory,Cash Flows for Operating Activities: Subcategory,Receipts: Single line Single line Total Cash Receipts Single line Subcategory,Payments: Single line Single line Total Cash Payments Single lineSingle line Net Cash Provided by Operating Activities Single line Subcategory,Cash Flows from Investing Activities: Single line Single line Net Cash Used for Investing Activities Single line Subcategory,Cash Flows from Financing Activities: Single line Single line Net Cash Provided by Financing Activities Single lineSingle line Net Increase (Decrease) in Cash Single line Single line Cash Balance, June 30, 2020 Single lineDouble line
Statement of Cash Flows - Direct Method
For Year Ending June 30, 2020Description Amount Total Subcategory,Cash Flows for Operating Activities: Subcategory,Receipts: Collections from Customers 241,000 Dividends Received on Investments 10,600Single line Single line Total Cash Receipts Single line251,600 Subcategory,Payments: To Suppliers -120,000 To Employees -50,300 For Interest -3,200 For Taxes -9,000Single line Single line Total Cash Payments Single line-182,500Single line Net Cash Provided by Operating Activities Single line69,100 Subcategory,Cash Flows from Investing Activities: Cash Receipts from sale of Land 28,000 Cash Purchases of Plant Assets -109,000Single line Single line Net Cash Used for Investing Activities Single line-81,000 Subcategory,Cash Flows from Financing Activities: Cash Receipts from issuance of Stock 34,000 Cash Payments of Notes Payable -19,000 Cash Payment of Dividends -14,000Single line Single line Net Cash Provided by Financing Activities Single line1,000Single line Net Increase (Decrease) in Cash Single line-10,900 Cash Balance, June 30, 2019 26,000Single line Cash Balance, June 30, 2020 Single line15,100Double line