The Khan Group provided its balance sheet and income

statement #3367
The Khan Group provided its balance sheet and income statement as of December 31 of the
current year.The Khan GroupIncome StatementFor the Year Ended December 31 Current
YearSales………………………………………………… $ 2,212,040Cost of Goods Sold………………………
1,327,224Gross Profit…………………………………………. $ 884,816Selling, General, and Administrativ
Expenses…….. $ 43,000Unrealized Losses…………………………………… $ 3,600Pension
Expense…………………………………….. 210,500Bad Debt Expense…………………………………... 1,5
Expense……………………………….. 17,700Amortization Expense………………………………. 6,750Tota
Expenses…………………………… $ 283,050Income before Interest and Taxes…………………… $ 601,
Expense…………………………………….. $ (50,100)Investment Income (includes gain on sale)………….
50,000Equity Earnings from Affiliate Companies…………. 118,500Income before
Tax…………………………………... $ 720,166Income Tax Expense………………………………… (288,06
Income………………………………………….. $ 432,100Additional Information:1. The company classifies
current investments as trading securities. It sold securities with a cost of $ 34,500 during the
current year. Treat the trading securities as an investing activity.2. The company reported
accounts receivable net of the allowance for bad debts.3. The company acquired equipment
during the year and made no disposals. Paid cash.4. The company included a $ 40,500 gain on
the sale of investments in investment income on the income statement.5. The change in
accumulated other comprehensive income is due to pension adjustments.6. There were no
additional investments in affiliate companies during the year.Required:Prepare the company’s
cash flow statement for the current year under the indirect method. Provide all required
disclosures.View Solution:
The Khan Group provided its balance sheet and income statement

ANSWER
http://paperinstant.com/downloads/the-khan-group-provided-its-balance-sheet-and-income-
statement/

1/1
Powered by TCPDF (www.tcpdf.org)