5. A condensed statement of financial position for Malcolm Heights Inc. appears below. MALCOLM HEIGHTS INC. Condensed Comparative Statements of Financial Position December 31, 2020 Assets 2020 $ 68,000 97,000 185,000 2019 $ 36,000 Cash. Accounts receivable Inventory .. Long-term investments Property, plant, and equipment . Accumulated depreciation 64,000 144,000 30,000 448,000 (100,000) $728,000 20,000 400,000 (80,000) $584,000 Total. Liabilities and Shareholders' Equity $ 76,000 20,000 260,000 150,000 $ 68,000 Accounts payable. Unearned revenue. 24,000 Note payable (due Dec. 31, 2023) Common shares. Retained earnings. Total 200,000 100,000 222,000 $728,000 192,000 $584,000 Additional information for Malcolm Heights Inc. regarding fiscal 2020: a. The income statement for the year-ending December 31, 2020 reported the following: i. Net Income ii. Depreciation expense iii. Loss on disposal of property, plant and equipment b. No investments were sold during the year. New property, plant, and equipment was purchased for cash. sis0,000 $30,000 S8,000 с. d. Old property, plant, and equipment with an original cost of $18,000 was scrapped when the carrying amount was $8,000. e. There were no repayments on the note payable. f. No shares were repurchased during the year. g. A cash dividend was declared and paid during the year. Prepare the cash flow statement for the year-ended December 31, 2020 using the indirect method.
5. A condensed statement of financial position for Malcolm Heights Inc. appears below. MALCOLM HEIGHTS INC. Condensed Comparative Statements of Financial Position December 31, 2020 Assets 2020 $ 68,000 97,000 185,000 2019 $ 36,000 Cash. Accounts receivable Inventory .. Long-term investments Property, plant, and equipment . Accumulated depreciation 64,000 144,000 30,000 448,000 (100,000) $728,000 20,000 400,000 (80,000) $584,000 Total. Liabilities and Shareholders' Equity $ 76,000 20,000 260,000 150,000 $ 68,000 Accounts payable. Unearned revenue. 24,000 Note payable (due Dec. 31, 2023) Common shares. Retained earnings. Total 200,000 100,000 222,000 $728,000 192,000 $584,000 Additional information for Malcolm Heights Inc. regarding fiscal 2020: a. The income statement for the year-ending December 31, 2020 reported the following: i. Net Income ii. Depreciation expense iii. Loss on disposal of property, plant and equipment b. No investments were sold during the year. New property, plant, and equipment was purchased for cash. sis0,000 $30,000 S8,000 с. d. Old property, plant, and equipment with an original cost of $18,000 was scrapped when the carrying amount was $8,000. e. There were no repayments on the note payable. f. No shares were repurchased during the year. g. A cash dividend was declared and paid during the year. Prepare the cash flow statement for the year-ended December 31, 2020 using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:5. A condensed statement of financial position for Malcolm Heights Inc. appears below.
MALCOLM HEIGHTS INC.
Condensed Comparative Statements of Financial Position
December 31, 2020
Assets
2020
$ 68,000
2019
$ 36,000
Cash.
Accounts receivable
97,000
185,000
30,000
448,000
(100,000)
$728,000
64,000
144,000
Inventory .
Long-term investments
Property, plant, and equipment
Accumulated depreciation
Total
20,000
400,000
(80,000)
$584,000
Liabilities and Shareholders' Equity
Accounts payable.
$ 76,000
$ 68,000
Unearned revenue.
20,000
24,000
Note payable (due Dec. 31, 2023)
Common shares.
Retained earnings.
260,000
150,000
200,000
100,000
192,000
$584,000
222,000
$728,000
Total .
Additional information for Malcolm Heights Inc. regarding fiscal 2020:
a. The income statement for the year-ending December 31, 2020 reported the following:
si50,000
i. Net Income
ii. Depreciation expense
iii. Loss on disposal of property, plant and equipment
b. No investments were sold during the year.
$30,000
$8,000
New property, plant, and equipment was purchased for cash.
d. Old property, plant, and equipment with an original cost of $18,000 was scrapped when the
carrying amount was $8,000.
e. There were no repayments on the note payable.
f. No shares were repurchased during the year.
g. A cash dividend was declared and paid during the year.
C.
Prepare the cash flow statement for the year-ended December 31, 2020 using the indirect
method.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education