Answered: 2020 2019 Cash $1,800 $1,130…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

24.

Partially correct answer icon

Your answer is partially correct.

Condensed financial data of Sheffield Company for 2020 and 2019 are presented below.

SHEFFIELD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
	2020		2019
Cash	$1,800			$1,130
Receivables	1,770			1,320
Inventory	1,560			1,890
Plant assets	1,900			1,700
Accumulated depreciation	(1,220	)		(1,180	)
Long-term investments (held-to-maturity)	1,300			1,430
	$7,110			$6,290

Accounts payable	$1,220			$890
Accrued liabilities	190			250
Bonds payable	1,410			1,520
Common stock	1,870			1,730
Retained earnings	2,420			1,900
	$7,110			$6,290

SHEFFIELD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue		$6,860
Cost of goods sold		4,710
Gross margin		2,150
Selling and administrative expenses		920
Income from operations		1,230
Other revenues and gains
Gain on sale of investments		80
Income before tax		1,310
Income tax expense		530
Net income		780
Cash dividends		260
Income retained in business		$520

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

SHEFFIELD COMPANY Statement of Cash Flows choose the accounting period (Direct Method)
select an opening name for section one
select an item		$enter a dollar amount
select an item	$enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
		enter a subtotal of the three previous amounts
select a closing name for section one		enter a total amount for section one

select an opening name for section two
select an item	enter a dollar amount
select an item	enter a dollar amount
select a closing name for section two		enter a total amount for section two

select an opening name for section three
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select a closing name for section three		enter a total amount for section three

select an item		enter a total amount for three sections
select an item		enter a dollar amount
select a closing name for this statement		$enter a total of the two previous amounts

select an opening name for additional section
select an item		$enter a dollar amount

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions