During 2014,Waggoner Company Performed Services for Which Customers Paid or Promised

question 87

Essay

During 2014,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: 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).
3.Prepare a statement of cash flows for the year (December 31 year-end)

---

Definitions:

Glucocorticoid

A class of steroid hormones that play a significant role in the regulation of metabolism, immune response, and stress within the body.

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone," involved in the body's stress response.

Essential Hypertension

High blood pressure with no identifiable cause, also known as primary hypertension.

Behavioural Medicine

An interdisciplinary field combining medical and psychological interventions to treat and manage physical health conditions.