Skyler's Wine Company Uses the Direct Method to Prepare ItsAdditional Information Provided by the Company Includes the Following: Equipment

The Answer of Skyler's Wine Company Uses the Direct Method to Prepare ItsAdditional Information Provided by the Company Includes the Following: Equipment

Skyler's Wine Company Uses the Direct Method to Prepare ItsAdditional Information Provided by the Company Includes the Following: Equipment

The Answer of Skyler's Wine Company Uses the Direct Method to Prepare ItsAdditional Information Provided by the Company Includes the Following: Equipment

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Skyler's Wine Company Uses the Direct Method to Prepare Its

question 38

Essay

Skyler's Wine Company uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ending December 31,2017:
$Skyler's Wine Company uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ending December 31,2017: \begin{array}{c} \text { Skyler's Wine Company}\\ \text { Income Statement}\\ \text { Year Ended December 31, 2017}\\\begin{array}{|l|r|r|} \hline \text { Sales Revenue } & \$ 291,300 & \\ \hline \text { Interest Revenue } & 1,000 & \\ \hline \text { Gain on Sale of Plant Assets } & \underline{6,000} & \\ \hline \text { Total Revenues and Gains } & & \$ 298,300 \\ \hline \text { Cost of Goods Sold } & 145,000 \\ \hline \text { Salaries and Wages Expense } & 49,000 \\ \hline \text { Depreciation Expense - Plant Assets } & 16,000 \\ \hline \text { Other Operating Expense } & 25,000 \\ \hline \text { Interest Expense } & 3,500 \\ \hline \text { Income Tax Expense } & 7,800 \\ \hline \text { Total Expenses } & & 246,300 \\ \hline \text { Net Income } & & \$ 52,000\\ \hline \end{array}\end{array} Additional information provided by the company includes the following: Equipment costing $60,000 was purchased for cash. Equipment with a net asset value of $10,000 was sold for $16,000. During 2017,the company repaid $43,000 of long-term notes payable. During 2017,the company borrowed $34,000 on a new note payable. There were no stock retirements during the year. There were no sales of Treasury Stock during the year. Prepare a complete statement of cash flows using the direct method. Accrued Liabilities relate to other operating expenses.$ $\begin{array}{c} \text { Skyler's Wine Company}\\\text { Income Statement}\\\text { Year Ended December 31, 2017}\\\begin{array}{|l|r|r|}\hline \text { Sales Revenue } & \$ 291,300 & \\\hline \text { Interest Revenue } & 1,000 & \\\hline \text { Gain on Sale of Plant Assets } & \underline{6,000} & \\\hline \text { Total Revenues and Gains } & & \$ 298,300 \\\hline \text { Cost of Goods Sold } & 145,000 \\\hline \text { Salaries and Wages Expense } & 49,000 \\\hline \text { Depreciation Expense - Plant Assets } & 16,000 \\\hline \text { Other Operating Expense } & 25,000 \\\hline \text { Interest Expense } & 3,500 \\\hline \text { Income Tax Expense } & 7,800 \\\hline \text { Total Expenses } & & 246,300 \\\hline \text { Net Income } & & \$ 52,000\\\hline\end{array}\end{array}$ Additional information provided by the company includes the following:
Equipment costing $60,000 was purchased for cash.
Equipment with a net asset value of $10,000 was sold for $16,000.
During 2017,the company repaid $43,000 of long-term notes payable.
During 2017,the company borrowed $34,000 on a new note payable.
There were no stock retirements during the year.
There were no sales of Treasury Stock during the year.
Prepare a complete statement of cash flows using the direct method.
Accrued Liabilities relate to other operating expenses.

Definitions:

Low Axle Lube Level

Low axle lube level indicates an insufficient amount of lubricant in the vehicle's axle system, which can lead to increased friction and damage.

Pinion Gear

A small gear that engages with a larger gear or rack, often used to transmit rotational motion in machinery.

Tooth Contact Pattern

The intermesh contact surfaces between a pair of mating gears; usually no-load tested using machinist’s (Prussian) blue or other semifluid test media.

Crown Gear

A large disc-shaped gear usually driven at right angles by a smaller pinion gear. It alters the torque path direction in a final drive carrier by 90 degrees, so that a longitudinal drive shaft can deliver transverse torque to the driving wheels.