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).

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Definitions:

Bar Chart

A graphical representation of data using bars of different heights or lengths to compare values across categories.

Distribution Of Quantitative Data

The way in which quantitative data are spread or dispersed across different values.

Bar Charts

A graphical display of data using bars of different heights or lengths to represent various values.

Pie Charts

Graphical representations of data that divided a circle into sectors or slices to illustrate numerical proportion.