super view company s comparative balance sheets and its current income statement are 4374520

Super View Company’s comparative balance sheets and its current income statement are presented below. Super View Company Income Statement For the year ended December 31 Current Year Sales……………………………………………. $ 1,875,000 Cost of Goods Sold…………………………..… 1,125,000 Gross Profit……………………………………… $ 750,000 Selling, General, and Administrative Expenses… $ 998,500 Bad Debt Expense………………………………. 65,500 Depreciation Expense…………………………… 200,000 Amortization Expense…………………………… 30,000 Total Operating Expenses……………………….. $ 1,294,000 Loss before Interest and Taxes…………………… $ (544,000) Interest Expense…………………………………. (75,110) Franchise Fees……………………………………. 8,950 Loss from Continuing Operations before Tax……. $ (610,160) Income Tax Benefit (Expense)…………………… $ 244,064 Increase in Valuation Allowance…………………. (44,064) Net Tax Benefit…………………………………… $ 200,000 Loss from Continuing Operations…………………. $ (410,160) Discontinued Operations–net of tax……………….. 20,500 Net Loss……………………………………………. $ (389,660) Additional Information: 1. Super View did not sell any plant or intangible assets during the current year. It acquired equipment and a new franchise during the year using cash. 2. Super View reports accounts receivable net of the allowance for bad debts. 3. The deferred-tax asset is caused by a net operating loss; Super View reported it net of a valuation allowance estimated at $ 44,064. 4. Due to its net operating loss, the company was not able to declare and pay dividends this year. 5. N o debt payments were made this year. 6. Due to the net operating loss, there are no taxes due and payable for the current year. The company did pay the amount of taxes payable from the prior year. 7. Supper View reported the income from discontinued operations net of tax and as a cash transaction. Required Prepare the company’s cash flow statement for the current year under the indirect method and present required disclosures. View Solution:
Super View Company s comparative balance sheets and its current income

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