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Income Statement
Year Ended Ended June 30, 2020Description Amount Total Sales Revenue 228,000 Cost of Goods Sold 104,000Single line Gross Profit Single line124,000 Subcategory,Operating Expenses: Salaries Expense 48,000 Advertising Expense 12,000 Depreciation Expense-Plant Assets 25,000Single line Single line Total Operating Expenses Single line85,000Single line Income From Operations Single line39,000 Subcategory,Other Income (Expenses) Dividend Revenue 10,800 Interest Expense -3,200Single line Single line Total Other Income (Expenses) Single line7,600Single line Net Income Before Income Taxes Single line46,600 Income Tax Expense 8,000Single line Net Income Single line38,600
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 $1,700 more than salaries expense.
e) Cash payment for the acquisition of plant assets is $106,000.
f) Cash receipts from sale of land total $25,000.
g) Cash receipts from issuance of common stock total $32,000.
h) Payment of long-term notes payable is $18,000.
i) Payment of dividends is $13,000.
j) Cash balance at June 30, 2019, was $26,000; at June 30, 2020, it was $23,000.
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 243,000 Dividends Received on Investments 10,800Single line Single line Total Cash Receipts Single line253,800 Subcategory,Payments: To Suppliers -116,000 To Employees -49,700 For Interest -3,200 For Taxes -8,000Single line Single line Total Cash Payments Single line-176,900Single line Net Cash Provided by Operating Activities Single line76,900 Subcategory,Cash Flows from Investing Activities: Cash Receipts from sale of Land 25,000 Cash Purchases of Plant Assets -106,000Single 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 32,000 Cash Payments of Notes Payable -18,000 Cash Payment of Dividends -13,000Single line Single line Net Cash Provided by Financing Activities Single line1,000Single line Net Increase (Decrease) in Cash Single line-3,100 Cash Balance, June 30, 2019 26,000Single line Cash Balance, June 30, 2020 Single line22,900Double line