FANCY FOOTWORK COMPANY INCOME STATEMENT For the year ended Dec 31, 2013 Sales 750000 Cost of Goods Sold 530000 Gross Margin 220000 Selling and administrative expenses 106000 Income f

FANCY FOOTWORK COMPANY

INCOME STATEMENT

For the year ended Dec 31, 2013

Sales 750000

Cost of Goods Sold 530000

Gross Margin 220000

Selling and administrative expenses 106000

Income from Operations 114000

Other revenues and gains

Gain on sale of investments 7000

Income before tax 121000

Income tax expense 48400

Net Income 72600

Additional information:

During the year, $9000 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $32500.

Required:

A) Prepare a statement of cash flows using the indirect method

B) Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

Leave a Comment