【正文】 s 60,000 Gain on sale of invest. 12,000 Changes Gain on sale of investments C14 52 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 0 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Cash 72,000 Investments 60,000 Gain on sale of invest. 12,000 Changes Gain on sale of investments Why isn’t the cash inflow of $72,000 shown here? C14 53 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 0 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Cash 72,000 Investments 60,000 Gain on sale of invest. 12,000 Changes Gain on sale of investments The cash inflow of $72,000 will be shown in the investing section of the statement of cash flows. C14 54 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 0 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Interest expense 8,000 Cash Changes Cash paid for interest expense C14 55 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 0 Other expense: Interest expense 8,000 4,000 (8,000) Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Interest expense 8,000 Cash 8,000 Changes Cash paid for interest expense There is no interest payable account at the end of the year. C14 56 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 (8,000) Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Ine tax expense 83,000 Ine tax payable 500 Cash Changes Cash paid for ine taxes C14 57 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 (8,000) Ine before ine tax $ 191,000 Ine tax 83,000 (83,500) Net ine $ 108,000 Debit Credit Ine tax expense 83,000 Ine tax payable 500 Cash 83,500 Changes Cash paid for ine taxes C14 58 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $ 187,000 Other ine: Gain on sale of land $12,000 0 Other expense: Interest expense 8,000 4,000 (8,000) Ine before ine tax $ 191,000 Ine tax 83,000 (83,500) Net ine $ 108,000 $ 100,500 C14 59 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $ 187,000 Other ine: Gain on sale of land $12,000 0 Other expense: Interest expense 8,000 4,000 (8,000) Ine before ine tax $ 191,000 Ine tax 83,000 (83,500) Net ine $ 108,000 $ 100,500 Two different views of ine from operations C14 60 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $ 187,000 Other ine: Gain on sale of land $12,000 0 Other expense: I