Use the Following Financial Statements and Additional Information to (1)prepare

question 105

Essay

Use the following financial statements and additional information to (1)prepare a complete statement of cash flows for the year ended December 31,Year 2.The cash provided or used by operating activities should be reported using the direct method,and (2)compute the company's cash flow on total assets ratio for Year 2.
Additional Information
a.A $20,000 note payable is retired at its carrying value in exchange for cash.
b.The only changes affecting retained earnings are net income and cash dividends paid.
c.New equipment is acquired for $120,000 cash.
d.Received cash for the sale of equipment that had cost $85,000,yielding a gain of $4,700.
e.Prepaid expenses relate to Other Expenses on the income statement.
f.All purchases and sales of merchandise inventory are on credit.

Identify the relationship between atmospheric conditions and the evolution and diversification of life.

Explain the fossilization process and the representation of different organisms in the fossil record.

Grasp the importance of symbiotic relationships in evolution.

Understand the sequence and impact of major events in Earth's history on its biota.

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Definitions:

Fixed Cost Elements

Costs that do not change with the level of production or sales activity within a certain range or over a certain period.

Telephone Costs

Expenses related to the usage of telecommunication services by a business, categorized as utility expenses and recorded in the income statement.

Margin Of Safety

The difference between actual or projected sales and the break-even point, measuring operational risk and efficiency.

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.