Presented below are the 2024 Income Statement and 2023 and 2024 Balance Sheets for Ollivander’s Workshop, Inc. Prepare a Cash Flow Statement for the year ended December 31, 2024. The following information is also known about the 2024 fiscal year: Equipment with a cost of $1,500 and accumulated depreciation of $1,000 was sold for $500 cash.
Ollivander's Workshop, Inc.
Income Statement
For the Year Ended December 31, 2024
Sales Revenue $15,050
Service Revenue 3,400
Total Revenue $18,450
Operating Expenses:
Cost of Goods Sold 5,600
Depreciation 1,600
Selling 2,400
General and administrative 1,500
Total Operating Expenses 11,100
Operating Income 7,350
Interest Expense 200
Income Before Income Taxes 7,150
Income Tax Expense 2,500
Net Income $4,650
Ollivander's Workshop, Inc.
Balance Sheets
As of December 31, 2023 and 2024
2024 2023
Assets
Cash $ 6,950 $ 2,200
Accounts Receivable 2,500 2,200
Inventory 4,400 2,600
Prepaid Rent 150 300
Plant and Equipment 14,500 12,000
Less: Accumulated Deprecation (5,100) (4,500)
Total Assets $ 23,400 $ 14,800
Liabilities and Shareholders’ Equity
Accounts Payable $ 1,800 $ 1,100
Interest Payable 100 0
Deferred Service Revenue 800 600
Income Taxes Payable 550 800
Note Payable, due 12/31/2026 5,000 0
Common Stock 9,600 9,600
Retained Earnings 5,550 2,700
Total Liabilities and Shareholders’ Equity $ 23,400 $ 14,800