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Revenues and gains:2145 Sales revenue95 Gain on sale of investments2240Expenses and Losses:1330 Cost of Goods Sold160 Selling expense150 General and Administrative60 Interest Expense1700 Total expenses and losses540 Income before income taxes216 Income tax expense324 Net income
2145 Sales Revenue1330 Cost of goods sold815 Gross profitOperating expenses:160 Selling expense150 General and administrative310 Total operating expenses505 Operating incomeOther income (expense):95 Gain on sale of investments-60 Interest expense35 Total other income, net540 Income before taxes216 Income tax expense40%324 Net income
Cash received from:800,000 Customers26,000 Interest on note receivable240,000 Collection of note receivable54,000 Sale of land340,000 Issuance of common stockCash paid for:32,000 Interest on note payable190,000 Purchase of equipment510,000 Operating expenses44,000 Dividends to shareholdersCash flows from investing activities:240,000 Proceeds from note receivable collection54,000 Sale of land(190,000) Purchase of equipment104,000 Net cash flows from investing activities