Computing investing and financing cash flows Kyler Media Corporation had the following income statement and balance sheet for 2012:
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KYLER MEDIA CORPORATION Income Statement Year Ended December 31, 2012 |
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|
Service revenue |
$80,000 |
|
Depreciation expense |
5,600 |
|
Other expenses |
49,000 |
|
Net income |
$25,400 |
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KYLER MEDIA CORPORATION |
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Liabilities |
2012 |
2011 |
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Current: |
2012 |
2011 |
Current: |
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Cash |
$ 4,800 |
$ 3,800 |
Accounts payable |
$ 9,000 |
$ 4,000 |
|
Accounts receivable |
9,600 |
4,100 |
Long term notes payable |
9,000 |
15,000 |
|
Equipment, net |
78,000 |
67,000 |
Stockholders’ Equity |
|
|
|
Assets |
Common stock |
22,000 |
17,000 |
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Retained earnings |
52,400 |
38,900 |
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Total assets |
$ 92,400 |
$ 74,900 |
Total liabilities and stockholders’ equity |
$ 92,400 |
$ 74,900 |
Requirement
1. Compute for Kyler Media Corporation during 2012 the
a. acquisition of equipment. The business sold no equipment during the year.
b. payment of a long term note payable. During the year, the business issued a $5,300 note payable.