star land corporation provided the following comparative balance sheets and income s 4374403

Star land Corporation provided the following comparative balance sheets and income statement. Star land Corporation Income Statement For the Year Ended December 31 Current Year Sales……………………………………………. $ 1,875,050 Cost of Goods Sold……………………………… 1,125,030 Gross Profit……………………………………… $ 750,020 Selling, General, and Administrative Expenses…. $ 205,000 Bad Debt Expense……………………………….. 4,394 Depreciation Expense……………………………. 39,525 Total Operating Expenses………………………… $ 248,919 Income before Interest and Taxes………………… $ 501,101 Loss on Disposal of Equipment………………….. $ (50,000) Interest Expense…………………………………… (12,500) Income before Tax………………………………… $ 438,601 Income Tax Expense………………………………. (175,440) Net Income………………………………………… $ 263,161 Additional Information: 1. Starland did not acquire any additional plant assets during the current year. 2. Starland sold equipment with a carrying value of $ 429,404 at a $ 50,000 loss. 3. The company borrowed additional funds by issuing a long-term note. Any debt payments made during the year reduced the current portion of long-term debt. Required Prepare the cash flow statement for Starland Corporation for the current year using the indirect method. Provide all required disclosures. View Solution:
Star land Corporation provided the following comparative balance sheets and

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