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ICE Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit Cash Accounts receivable Merchandise inventory Inc. ICE Drilling Inc. Comparative Balance Sheet Information Prepaid expenses Equipment Accumulated depreciation Accounts payable Current notes payable Notes payable Common shares Retained earnings $ 45,000 306,360 $1,112,200 563,000 $ 549,288 351,360 $ 197,840 12,080 25,488 210,000 453,800 293,648 $ 185,768 27,768 $ 158,000 December 31 2823 2822 $ 123,688 $ 174,640 148,600 114,160 616,288 12,870 357,888 88,560 195,030 568,600 17,000 249,400 101,560 255,840 17,000 121,000 353,000 275,480 Additional information regarding ICE Drilling's activities during 2023: 1. Loss on sale of equipment is $12,080. 2. Paid $70,880 to reduce a long-term note payable. 3. Equipment costing $108,000, with accumulated depreciation of $66.000, is sold for cash. 4. Equipment costing $216,480 is purchased by paying cash of $56,600 and signing a long-term note payable for the balance. 5. Borrowed $8,400 by signing a short-term note payable. 6. Issued 10,080 common shares for cash at $10 per share. 7. Declared and paid cash dividends of $139,760.

ICE Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit Cash Accounts receivable Merchandise inventory Inc. ICE Drilling Inc. Comparative Balance Sheet Information Prepaid expenses Equipment Accumulated depreciation Accounts payable Current notes payable Notes payable Common shares Retained earnings $ 45,000 306,360 $1,112,200 563,000 $ 549,288 351,360 $ 197,840 12,080 25,488 210,000 453,800 293,648 $ 185,768 27,768 $ 158,000 December 31 2823 2822 $ 123,688 $ 174,640 148,600 114,160 616,288 12,870 357,888 88,560 195,030 568,600 17,000 249,400 101,560 255,840 17,000 121,000 353,000 275,480 Additional information regarding ICE Drilling's activities during 2023: 1. Loss on sale of equipment is $12,080. 2. Paid $70,880 to reduce a long-term note payable. 3. Equipment costing $108,000, with accumulated depreciation of $66.000, is sold for cash. 4. Equipment costing $216,480 is purchased by paying cash of $56,600 and signing a long-term note payable for the balance. 5. Borrowed $8,400 by signing a short-term note payable. 6. Issued 10,080 common shares for cash at $10 per share. 7. Declared and paid cash dividends of $139,760.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ICE Drilling Inc. Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit ICE Drilling Inc. Comparative Balance Sheet Information Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Accumulated depreciation Accounts payable Current notes payable Notes payable Common shares Retained earnings $ 45,000 306,360 December 31 148,600 616,200 12,070 357,880 80,560 Cash flows from operating activities: $1,112,200 563,000 $ 549,200 2023 2022 $ 123,680 $ 174,640 114,160 568, 600 195,030 25,400 210,000 453,800 293,640 Cash flows from investing activities: 351,360 $ 197,840 12,080 $ 185,760 27,760 $ 158,000 Additional information regarding ICE Drilling's activities during 2023: 1. Loss on sale of equipment is $12,080. 2. Paid $70,880 to reduce a long-term note payable. Cash flows from financing activities: 3. Equipment costing $108,000, with accumulated depreciation of $66,000, is sold for cash. 4. Equipment costing $216,480 is purchased by paying cash of $56,600 and signing a long-term note payable for the balance. 5. Borrowed $8,400 by signing a short-term note payable. 6. Issued 10,080 common shares for cash at $10 per share. 7. Declared and paid cash dividends of $139,760. Other information: a. All sales are credit sales. b. All credits to accounts receivable in the period are receipts from customers. c. Purchases of merchandise are on credit ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2023 17,000 249,400 101,560 255,840 17,000 121,000 353,000 275,400 d. All debits to accounts payable in the period result from payments for merchandise. e. The only decrease in income taxes payable is for payment of taxes. 1. The other expenses are paid in advance and are initially debited to Prepaid Expenses. Required: Prepare a statement of cash flows for 2023 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts.) $ $ $ 0 0 0 0 0
Transcribed Image Text:ICE Drilling Inc. Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit ICE Drilling Inc. Comparative Balance Sheet Information Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Accumulated depreciation Accounts payable Current notes payable Notes payable Common shares Retained earnings $ 45,000 306,360 December 31 148,600 616,200 12,070 357,880 80,560 Cash flows from operating activities: $1,112,200 563,000 $ 549,200 2023 2022 $ 123,680 $ 174,640 114,160 568, 600 195,030 25,400 210,000 453,800 293,640 Cash flows from investing activities: 351,360 $ 197,840 12,080 $ 185,760 27,760 $ 158,000 Additional information regarding ICE Drilling's activities during 2023: 1. Loss on sale of equipment is $12,080. 2. Paid $70,880 to reduce a long-term note payable. Cash flows from financing activities: 3. Equipment costing $108,000, with accumulated depreciation of $66,000, is sold for cash. 4. Equipment costing $216,480 is purchased by paying cash of $56,600 and signing a long-term note payable for the balance. 5. Borrowed $8,400 by signing a short-term note payable. 6. Issued 10,080 common shares for cash at $10 per share. 7. Declared and paid cash dividends of $139,760. Other information: a. All sales are credit sales. b. All credits to accounts receivable in the period are receipts from customers. c. Purchases of merchandise are on credit ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2023 17,000 249,400 101,560 255,840 17,000 121,000 353,000 275,400 d. All debits to accounts payable in the period result from payments for merchandise. e. The only decrease in income taxes payable is for payment of taxes. 1. The other expenses are paid in advance and are initially debited to Prepaid Expenses. Required: Prepare a statement of cash flows for 2023 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts.) $ $ $ 0 0 0 0 0
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