During 2011,Waggoner Company Performed Services for Which Customers Paid or Promised

question 42

Essay

During 2011,Waggoner Company performed services for which customers paid or promised to pay $587,000.Of this amount,$552,000 had been collected by year end.Waggoner paid $340,000 in cash for employee wages and owed the employees $15,000 at the end of the year for work that had been done but had not paid for.Waggoner paid interest expense of $3,000 and $195,000 for other service expenses.The income tax rate was 35%,and income taxes had not yet been paid at the end of the year.Waggoner declared and paid dividends of $20,000.There were no other events that affected cash.
Required:
1.What was the amount of the increase or decrease in cash during the year?
2.Prepare an income statement for Waggoner for the year (December 31 year-end).

---

Definitions:

Union Suppression

Strategies or practices employed by employers to prevent or diminish union influence and employee organization within the workplace.

Union Suppression

Efforts or strategies aimed at weakening, regulating, or eliminating labor unions and their influence on workers and workplace conditions.

Strike Replacements

Workers who are hired to fill the positions of striking workers during a labor strike, often controversial as they can undermine the effectiveness of the strike.

Ethical Perspective

A viewpoint or approach considering what is morally right or wrong in the context of decision-making or behavior.