The following are Grouper Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.COMPARATIVE BALANCE SHEETS 2020 2019 Increase(Decrease)Cash $810,600 $701,400 $109,200 Accounts receivable 1,135,300 1,156,300 (21,000)Inventory 1,850,800 1,708,800 142,000 Property, plant, and equipment 3,318,800 2,955,300 363,500 Accumulated depreciation (1,164,400) (1,035,600) (128,800)Investment in Myers Co. 307,400 277,400 30,000 Loan receivable 248,800 — 248,800 Total assets $6,507,300 $5,763,600 $743,700 Accounts payable $1,015,700 $949,200 $66,500 Income taxes payable 30,200 50,000 (19,800)Dividends payable 79,500 100,400 (20,900)Lease liabililty 423,200 — 423,200 Common stock, $1 par 500,000 500,000 — Paid-in capital in excess of par—common stock 1,499,000 1,499,000 — Retained earnings 2,959,700 2,665,000 294,700 Total liabilities and stockholders’ equity $6,507,300 $5,763,600 $743,700 Additional information:1. On December 31, 2019, Grouper acquired 25% of Myers Co.’s common stock for $277,400. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,109,600. Myers reported income of $120,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.2. During 2020, Grouper loaned $323,600 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $74,800, plus interest at 10%, on December 31, 2020.3. On January 2, 2020, Grouper sold equipment costing $59,700, with a carrying amount of $37,700, for $39,900 cash.4. On December 31, 2020, Grouper entered into a capital lease for an office building. The present value of the annual rental payments is $423,200, which equals the fair value of the building. Grouper made the first rental payment of $60,000 when due on January 2, 2021.5. Net income for 2020 was $374,200.6. Grouper declared and paid the following cash dividends for 2020 and 2019. 2020 2019Declared December 15, 2020 December 15, 2019Paid February 28, 2021 February 28, 2020Amount $79,500 $100,400Prepare a statement of cash flows for Grouper Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)GROUPER CORP.Statement of Cash Flowschoose the accounting period select an opening name for section one select an item $enter a dollar amount Adjustments to reconcile net income to select an opening subsection name 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 select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a total amount of the adjustmentsselect 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 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 a closing name for section three enter a total amount for section three select an item enter a total amount for three sectionsselect an item enter a dollar amountselect a closing name for this statement $enter a total of the two previous amounts select an item select

Cash flow statement : A statement is prepared in order to know the cash position of the company.…

2020 2019 Declared December 15, 2020 December 15, 2019 Paid February 28, 2021 February 28, 2020 Amount $79,500 $100,400 Prepare a statement of cash flows for Grouper Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) GROUPER CORP. Statement of Cash Flows choose the accounting period select an opening name for section one select an item $enter a dollar amount Adjustments to reconcile net income to select an opening subsection name 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 select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a total amount of the adjustments 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 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 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 item select

2020 2019 Declared December 15, 2020 December 15, 2019 Paid February 28, 2021 February 28, 2020 Amount $79,500 $100,400 Prepare a statement of cash flows for Grouper Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) GROUPER CORP. Statement of Cash Flows choose the accounting period select an opening name for section one select an item $enter a dollar amount Adjustments to reconcile net income to select an opening subsection name 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 select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a total amount of the adjustments 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 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 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 item select

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following are Grouper Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS
	2020		2019		Increase (Decrease)
Cash	$810,600			$701,400		$109,200
Accounts receivable	1,135,300			1,156,300		(21,000	)
Inventory	1,850,800			1,708,800		142,000
Property, plant, and equipment	3,318,800			2,955,300		363,500
Accumulated depreciation	(1,164,400	)		(1,035,600	)	(128,800	)
Investment in Myers Co.	307,400			277,400		30,000
Loan receivable	248,800			—		248,800
Total assets	$6,507,300			$5,763,600		$743,700

Accounts payable	$1,015,700			$949,200		$66,500
Income taxes payable	30,200			50,000		(19,800	)
Dividends payable	79,500			100,400		(20,900	)
Lease liabililty	423,200			—		423,200
Common stock, $1 par	500,000			500,000		—
Paid-in capital in excess of par—common stock	1,499,000			1,499,000		—
Retained earnings	2,959,700			2,665,000		294,700
Total liabilities and stockholders’ equity	$6,507,300			$5,763,600		$743,700

Additional information:

1.		On December 31, 2019, Grouper acquired 25% of Myers Co.’s common stock for $277,400. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,109,600. Myers reported income of $120,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2.		During 2020, Grouper loaned $323,600 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $74,800, plus interest at 10%, on December 31, 2020.
3.		On January 2, 2020, Grouper sold equipment costing $59,700, with a carrying amount of $37,700, for $39,900 cash.
4.		On December 31, 2020, Grouper entered into a capital lease for an office building. The present value of the annual rental payments is $423,200, which equals the fair value of the building. Grouper made the first rental payment of $60,000 when due on January 2, 2021.
5.		Net income for 2020 was $374,200.
6.		Grouper declared and paid the following cash dividends for 2020 and 2019.

	2020	2019
Declared	December 15, 2020	December 15, 2019
Paid	February 28, 2021	February 28, 2020
Amount	$79,500	$100,400

Prepare a statement of cash flows for Grouper Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

GROUPER CORP. Statement of Cash Flows choose the accounting period
select an opening name for section one
select an item		$enter a dollar amount
Adjustments to reconcile net income to
select an opening subsection name
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
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
		enter a total amount of the adjustments
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 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 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 item
select

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