Additional information: 1. 2. 4. Dividends in the amount of $6,100 were declared and paid during 2025. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2025. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign eg-15,000 or in parenthesis eg. (15,000) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis eg (15,000)) MARIN INC. STATEMENT OF CASH FLOWS Adjustments to reconcile net income to Adjustments to reconcile net income to $ Marin Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Marin Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $6,000 $7,000 Accounts receivable 61,700 51,200 Short-term debt investments (available-for-sale) 34,900 18,000 Inventory 39,700 60,400 Prepaid rent 4,900 4,000 Equipment 155,500 128,900 Accumulated depreciation-equipment (35,100) (25,000) Copyrights 46,500 50,400 Total assets $314,100 $294,900 Accounts payable $45,600 $39,800 Income taxes payable 4,000 6,000 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,000 9,900 Long-term loans payable 59,700 68,600 Common stock, $10 par 100,000 100,000 Paid-in capital, common stock 30,000 30,000 Retained earnings 58,800 36,600 Total liabilities and stockholders' equity $314,100 $294,900 Marin Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue $339,375 Cost of goods sold 175,000 Gross profit 164,375 Operating expenses 119,400 Operating income 44,975 Interest expense $11,500 Gain on sale of equipment 1,900 9,600 Income before tax 35,375 Income tax expense 7,075 Net income $28,300 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense are included in operating expenses.

Additional information: 1. 2. 4. Dividends in the amount of $6,100 were declared and paid during 2025. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2025. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign eg-15,000 or in parenthesis eg. (15,000) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis eg (15,000)) MARIN INC. STATEMENT OF CASH FLOWS Adjustments to reconcile net income to Adjustments to reconcile net income to $ Marin Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Marin Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $6,000 $7,000 Accounts receivable 61,700 51,200 Short-term debt investments (available-for-sale) 34,900 18,000 Inventory 39,700 60,400 Prepaid rent 4,900 4,000 Equipment 155,500 128,900 Accumulated depreciation-equipment (35,100) (25,000) Copyrights 46,500 50,400 Total assets $314,100 $294,900 Accounts payable $45,600 $39,800 Income taxes payable 4,000 6,000 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,000 9,900 Long-term loans payable 59,700 68,600 Common stock, $10 par 100,000 100,000 Paid-in capital, common stock 30,000 30,000 Retained earnings 58,800 36,600 Total liabilities and stockholders' equity $314,100 $294,900 Marin Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue $339,375 Cost of goods sold 175,000 Gross profit 164,375 Operating expenses 119,400 Operating income 44,975 Interest expense $11,500 Gain on sale of equipment 1,900 9,600 Income before tax 35,375 Income tax expense 7,075 Net income $28,300 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense are included in operating expenses.

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 49E

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