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Statement of Cash Flow

The 2024 income statement and comparative balance sheet of

CanGrow, Inc.

follow:

DATA:CanGrow, Inc.

Income Statement

Year Ended December 31, 2024

Net Sales Revenue = $441,000

Cost of Goods Sold = 204,200

Gross Profit = 236,800

Operating Expenses:

Salaries Expense = $79,400

Depreciation Expense—Plant Assets = 14,800

Other Operating Expenses = 10,100

Total Operating Expenses = 104,300

Operating Income = 132,500

Other Income and (Expenses):

Interest Revenue = 8,500

Interest Expense = (21,700)

Total Other Income and (Expenses) = (13,200)

Net Income Before Income Taxes = 119,300

Income Tax Expense = 19,400

Net Income = $99,900

MORE DATA:

CanGrow, Inc.

Comparative Balance Sheet

December 31, 2024 and 2023

Assets:

Current Assets:

2024 Cash = 26,500

2023 Cash = 15,900

2024 Accounts Receivable = 26,700

2023 Accounts Receivable = 25,000

2024 Merchandise Inventory = 79,400

2023 Merchandise Inventory = 92,000

Long-term Assets:

2024 Land = 35,400

2023 Land = 9,000

2024 Plant Assets = 115,070

2023 Plant Assets = 110,310

2024 Accumulated Depreciation – Plant Assets = (17,170)

2023 Accumulated Depreciation – Plant Assets = (15,610)

2024 Total Assets = 265,900

2023 Total Assets = 236,600

Liabilities: Current liabilities:

2024 Accounts Payable = 35,200

2023 Accounts Payable = 29,900

Long-term liabilities:

2024 Notes Payable = 72,000

2023 Notes Payable = 102,000

2024 Total Liabilities = 136,100

2023 Total Liabilities = 162,000

Stockholders’ Equity : 2024 Common Stock, no par = 88,500

2023 Common Stock, no par = 64,100

2024 Retained Earnings = 41,300

2023 Retained Earnings = 10,500

2024 Total Stockholders’ Equity = 129,800

2023 TotalStockholders’ Equity = 74,600

2024 Total Liabilities and Stockholders’ Equity = 265,900

2023 Total Liabilities and Stockholders’ Equity = 236,600

MORE INFO:

Additionally, CanGrow purchased land of $ 26,400 by financing it 100% with long-term notes payable during 2024. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $ 13,240. The plant acquisition was for cash.

Prepare the 2024 Statement of Cash Flows by the direct method. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.)

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