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The income statement, balance sheets, and additional information for Peterson Incorporated are provided. PETERSON INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment $2,580,000 6,000 2,586,000 $1,640,000 613,000 31,000 32,000 78,000 2,394,000 $192,000 PETERSON INCORPORATED Balance Sheets December 31 Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 2024 2023 $355,520 66,200 $291,840 82,000 157,000 143,000 4,480 6,960 213,000 120,000 214,000 268,000 246,000 218,000 (140,000) (109,000) $1,116,200 $1,020,800 $34,000 $96,000 Interest payable 5,000 3,800 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 24,200 28,000 261,000 233,000 Common stock 438,000 380,000 Retained earnings 354,000 280,000 Total liabilities and stockholders' equity $1,116,200 $1,020,800 Additional Information for 2024: 1. Purchased additional investment in stocks for $93,000. 2. Sold land for $60,000. The land originally was purchased for $54,000, resulting in a $6,000 gain being recorded at the time of the sale. 3. Purchased $28,000 in equipment by issuing a $28,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $118,000. 5. Issued common stock for $58,000. Required: Prepare the statement of cash flows for Peterson Incorporated using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) PETERSON INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Net cash flows from operating activities Cash Flows from Investing Activities: 0

The income statement, balance sheets, and additional information for Peterson Incorporated are provided. PETERSON INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment $2,580,000 6,000 2,586,000 $1,640,000 613,000 31,000 32,000 78,000 2,394,000 $192,000 PETERSON INCORPORATED Balance Sheets December 31 Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 2024 2023 $355,520 66,200 $291,840 82,000 157,000 143,000 4,480 6,960 213,000 120,000 214,000 268,000 246,000 218,000 (140,000) (109,000) $1,116,200 $1,020,800 $34,000 $96,000 Interest payable 5,000 3,800 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 24,200 28,000 261,000 233,000 Common stock 438,000 380,000 Retained earnings 354,000 280,000 Total liabilities and stockholders' equity $1,116,200 $1,020,800 Additional Information for 2024: 1. Purchased additional investment in stocks for $93,000. 2. Sold land for $60,000. The land originally was purchased for $54,000, resulting in a $6,000 gain being recorded at the time of the sale. 3. Purchased $28,000 in equipment by issuing a $28,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $118,000. 5. Issued common stock for $58,000. Required: Prepare the statement of cash flows for Peterson Incorporated using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) PETERSON INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Net cash flows from operating activities Cash Flows from Investing Activities: 0

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 19BEA
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The income statement, balance sheets, and additional information for Peterson Incorporated are provided. PETERSON INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment $2,580,000 6,000 2,586,000 $1,640,000 613,000 31,000 32,000 78,000 2,394,000 $192,000 PETERSON INCORPORATED Balance Sheets December 31 Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 2024 2023 $355,520 66,200 $291,840 82,000 157,000 143,000 4,480 6,960 213,000 120,000 214,000 268,000 246,000 218,000 (140,000) (109,000) $1,116,200 $1,020,800 $34,000 $96,000 Interest payable 5,000 3,800 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 24,200 28,000 261,000 233,000 Common stock 438,000 380,000 Retained earnings 354,000 280,000 Total liabilities and stockholders' equity $1,116,200 $1,020,800 Additional Information for 2024: 1. Purchased additional investment in stocks for $93,000. 2. Sold land for $60,000. The land originally was purchased for $54,000, resulting in a $6,000 gain being recorded at the time of the sale. 3. Purchased $28,000 in equipment by issuing a $28,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $118,000. 5. Issued common stock for $58,000. Required: Prepare the statement of cash flows for Peterson Incorporated using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) PETERSON INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Net cash flows from operating activities Cash Flows from Investing Activities: 0
Transcribed Image Text:The income statement, balance sheets, and additional information for Peterson Incorporated are provided. PETERSON INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment $2,580,000 6,000 2,586,000 $1,640,000 613,000 31,000 32,000 78,000 2,394,000 $192,000 PETERSON INCORPORATED Balance Sheets December 31 Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 2024 2023 $355,520 66,200 $291,840 82,000 157,000 143,000 4,480 6,960 213,000 120,000 214,000 268,000 246,000 218,000 (140,000) (109,000) $1,116,200 $1,020,800 $34,000 $96,000 Interest payable 5,000 3,800 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 24,200 28,000 261,000 233,000 Common stock 438,000 380,000 Retained earnings 354,000 280,000 Total liabilities and stockholders' equity $1,116,200 $1,020,800 Additional Information for 2024: 1. Purchased additional investment in stocks for $93,000. 2. Sold land for $60,000. The land originally was purchased for $54,000, resulting in a $6,000 gain being recorded at the time of the sale. 3. Purchased $28,000 in equipment by issuing a $28,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $118,000. 5. Issued common stock for $58,000. Required: Prepare the statement of cash flows for Peterson Incorporated using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) PETERSON INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Net cash flows from operating activities Cash Flows from Investing Activities: 0
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