E14-17
The income statement of Minerals Plus, Inc. follows:
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Minerals Plus, Inc.
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Income Statement
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Year Ended September 30,2012
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Revenues:
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Service revenue
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$235,000
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Expenses:
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Cost
of goods sold
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$97,000
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Salary
expense
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$57,000
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Depreciation
expense
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$26,000
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Income
tax expense
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$4,000
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$184,000
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Net
income
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$51,000
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Additional
data follow:
a.
Acquisition of plant assets is $118,000. Of this amount $100,000 is paid in
cash and $18,000 by signing a note payable.
b.
Cash receipts from sale of land totals $28,000. There was no gain or loss.
c.
Cash receipts from issuance of common stock total $29,000.
d.
Payment of note payable is $18,000.
e.
Payment of dividends is $8,000.
f.
From the balance sheet:
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Sept.
30
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2012
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2011
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Current
Assets:
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Cash
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$30,00
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$8,000
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Accounts
receivable
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$41,000
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$59,000
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Inventory
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$97,000
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$93,000
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Current
Liabilities:
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Accounts
payable
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$30,000
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$17,000
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Accrued
liabilities
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$11,000
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$24,000
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Compute
DVD’s net cash provided by (used for) operating activities during July. Use the indirect method.
TUTORIAL PREVIEW
Minerals Plus, Inc.
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Statement of Cash Flows
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Year Ended September 30, 2012
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Cash flows from operating activities:
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Net income
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$51,000
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Adjustments to reconcile net income to
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net cash provided by operating activities:
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File name: E14-17
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