1. Business
  2. Accounting
  3. the following additional data were provided 1 dividends declared and...

Question: the following additional data were provided 1 dividends declared and...

Question details

LoWZ COMPANY Comparative Balance Sheet December 31 2017 2016 Assets Cash Accounts receivable Merchandise Inventory Property, plant, and equipment Accumulated depreciation $36,000 $23,000 34,000 15,000 78,000 (21,000) (24,000) $122,000 $126,000 25,000 32,000 50,000 Total Liabilities and Stockholders Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $18,000 $23,000 8,000 33,000 24,000 38,000 $122,000 $126,000 9,000 8,000 28,000 59,000 Total LowZ COMPANY Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $400,000 270,000 130,000 45,000 85,000 5,000 80,000 24,000 $56,000

The following additional data were provided:

1. Dividends declared and paid were $35,000.
2. During the year equipment was sold for $17,000 cash. This equipment cost $28,000 originally and had a book value of $17,000 at the time of sale.
3. All depreciation expense is in the operating expenses.
4. All sales and purchases are on account.
5. Accounts payable pertain to merchandise suppliers.
6. All operating expenses except for depreciation were paid in cash.


Prepare a statement of cash flows for Lowz Company using the direct method

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