A companies financial statement show the following.Balance Sheet InformationDecember 31, 20202020$236,60033,00061,5002019$146,50047,00049,00026,000365,000(200,000)Difference$90,100(14,000)12,500(26,000)90,000(90,000)CashAccounts receivableMerchandise inventoryLong-term investmentMachineryAccumulated depreciation, machinery455,000(290,000)Total assets$496,100$433,500$62,600$65,60066,000200,000164,500Accounts payableBonds payable$51,200$14,40066,000200,000182,300Common sharesRetained earnings(17,800)Total liabilities and shareholders'equity$496,100$415,700$62,600Income StatementFor the Year Ended December 31, 2020Sales$982,000Cost of goods soldOther expensesDepreciation expensesProfit from operationsLoss on sale of long-term investment$703,000135,00090,000928,000$54,00010,000Profit$44,000The following occurred during 2020:a. Purchased machinery for $90,000 cash.b. Sold the long-term investment for $16,000.c. Issued $66,000 of bonds payable at face value.d. Declared and paid a $61,800 cash dividend.Required:Prepare a Statement of Cash Flows using the indirect method.

In financial accounting, a cash flow statement, also known as the statement of cash flows, is a…

Answered: A companies financial statement show…

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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The balance sheets for Mary Company showed the following information. Additional information concerning transactions and events during 2021 are presented below. Mary CompanyBalance Sheet December 31 2021 2020 Cash $ 31,209 $ 10,302 Accounts receivable (net) 43,733 20,503 Inventory 35,350 42,420 Long-term investments 0 15,150 Property, plant & equipment 238,865 151,500 Accumulated depreciation (38,077) (25,250) $311,080 $214,625 Accounts payable $ 17,170 $ 26,765 Accrued liabilities 21,210 17,170 Long-term notes payable 70,700 50,500 Common stock 131,300 90,900 Retained earnings 70,700 29,290 $311,080 $214,625 Additional data: 1. Net income for the year 2021, $61,610. 2. Depreciation on plant assets for the year, $12,827. 3. Sold the long-term…
Mary, Inc. has prepared the following comparative balance sheets for 2020 and 2021: 2021 2020 Cash $ 310,200 $ 168,300 Accounts receivable 152,900 128,700 Inventory 165,000 198,000 Prepaid expenses 19,800 29,700 Plant assets 1,424,500 1,155,000 Accumulated depreciation (495,000) (412,500) Patents 168,300 191,400 $1,745,700 $1,458,600 Accounts payable $ 168,300 $ 184,800 Accrued liabilities 66,000 46,200 Martgage payable ― 495,000 Preferred stock 577,500 ― Additional paid-in capital—preferred 132,000 ― Common stock 660,000 660,000 Retained earnings 141,900 72,600 $1,745,700 $1,458,600 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been…
es MOSS COMPANY Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income MOSS COMPANY Selected Balance Sheet Information 2021 At December 31 Current assets Cash Accounts receivable Inventory Current liabilities Accounts payable Income taxes payable $ 85,650 26,000 61,000 Cash flows from operating activities: Net income 32,400 2,150 2020 $ 525,000 335,600 189,400 123,000 38,000 28,400 9,500 $ 18,900 Changes in current operating assets and liabilities $ 27,800 34,000 54,300 Use the information above to calculate cash flows from operating activities using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. 26,700 2,400 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 38,000 $ $ 18,300 38,000 56,300
IKIBAN INC.Comparative Balance SheetsJune 30, 2019 and 2018 2019 2018 Assets Cash $ 105,700 $ 47,000 Accounts receivable, net 69,500 54,000 Inventory 66,800 91,000 Prepaid expenses 4,700 6,000 Total current assets 246,700 198,000 Equipment 127,000 118,000 Accum. depreciation—Equipment (28,500 ) (10,500 ) Total assets $ 345,200 $ 305,500 Liabilities and Equity Accounts payable $ 28,000 $ 34,500 Wages payable 6,300 15,600 Income taxes payable 3,700 4,400 Total current liabilities 38,000 54,500 Notes payable (long term) 33,000 63,000 Total liabilities 71,000 117,500 Equity Common stock, $5 par value 226,000 163,000 Retained earnings 48,200 25,000 Total liabilities and equity $ 345,200 $ 305,500…
Income Statement For the year Ended December 31, 2020 Sales Cost of Goods Sold $ 390,000 235,000 Gross Profit S 155,000 Wages Expenses Depreciation Expense Other Operating Expenses Income Tax Expense S61000 14,000 26,000 17,000 120,000 Net Income $35000 Terry Company Balance Sheets Dec. 31, 2020 Dec. 1L Assets 2019 $ 30,000 35,000 84,000 8,000 130,000 (62.000) Cash Accounts Receivable (net) Inventory Prepaid Expense Plant Assets Accumulated Depreciation S16.000 28,000 110,000 12,000 178,000 (76,000) Total Assets $ 268,000 $ 225,000 I Liabilities and Stockholders' Equity Accounts Payable Wages Payable Income Tax Payable Common Stock Retained Earnings $ 27.000 6,000 3,000 135,000 97,000 S 14,000 2,500 4,500 125,000 79,000 Total Liabilities and S 268,000 $ 225,000 Stockholders' Equity Cash dividends of $17,000 were declared and paid during 2020 Plant assets of $48,000 were purchased for cash, and later in the year, an additional $10,000 common stock was issued for cash REQUIRED Prepare…
Kinder Company Balance Sheet December 31 2020 2019 Cash $ 40,208 $ 11,424 Accounts receivable (net) 42,896 22,736 Inventory 39,200 47,040 Long-term investments 0 16,800 Property, plant & equipment 264,880 168,000 Accumulated depreciation (42,224) (28,000) $344,960 $238,000 Accounts payable $ 19,040 $ 29,680 Accrued liabilities 23,520 19,040 Long-term notes payable 78,400 56,000 Common stock 145,600 100,800 Retained earnings 78,400 32,480 $344,960 $238,000 Kinder Company Income statement December 31, 2020 Sales Revenue $ 520,285 Cost of Goods Sold (304,045) Gross Profit 216,240 Operating Expenses (137,056) Depreciation Expense (14,224) Gain on Sale of Investment 14,560 Net Income $79,520 Additional data: 1. Paid dividends of $33,600…
Bonita Industries's balance sheet accounts as of December 31, 2021 and 2020 and information relating to 2018 activities are presented below. December 31, 2021 2020 Assets Cash $ 439000 $ 199000 Short-term investments 600000 — Accounts receivable (net) 1000000 1000000 Inventory 1360000 1190000 Long-term investments 398000 600000 Plant assets 3400000 2010000 Accumulated depreciation (900000) (900000) Patent 182000 201000 Total assets $6479000 $4300000 Liabilities and Stockholders' Equity Accounts payable and accrued liabilities $1660000 $1460000 Notes payable (nontrade) 582000 — Common stock, $10 par 1587000 1410000 Additional paid-in capital 802000 500000 Retained earnings 1848000 930000 Total liabilities and stockholders' equity $6479000 $4300000 Information relating to 2021 activities:• Net income…
Mary, Inc. has prepared the following comparative balance sheets for 2020 and 2021: 2021 2020 Cash $ 310,200 $ 168,300 Accounts receivable 152,900 128,700 Inventory 165,000 198,000 Prepaid expenses 19,800 29,700 Plant assets 1,424,500 1,155,000 Accumulated depreciation (495,000) (412,500) Patents 168,300 191,400 $1,745,700 $1,458,600 Accounts payable $ 168,300 $ 184,800 Accrued liabilities 66,000 46,200 Martgage payable ― 495,000 Preferred stock 577,500 ― Additional paid-in capital—preferred 132,000 ― Common stock 660,000 660,000 Retained earnings 141,900 72,600 $1,745,700 $1,458,600 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been…
Use the information above to calculate cash flows from operating activities using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 42,000 S 42.000 42.000
the balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 242,000 $ 130,000 Accounts receivable 98,000 102,000 Inventory 105,000 90,000 Investments 5,000 3,000 Long-term assets: Land 580,000 580,000 Equipment 890,000 770,000 Less: Accumulated depreciation (528,000 ) (368,000 ) Total assets $ 1,392,000 $ 1,307,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 109,000 $ 95,000 Interest payable 7,000 13,000 Income tax payable 9,000 6,000 Long-term liabilities: Notes payable 110,000 220,000 Stockholders' equity: Common stock…
The following information related to TRT Company for the years 2019 and 2020. 1. Income Statement Information 2019 2020 Net Sales $310,000 $250,000 Cost of Goods Sold 00,000 n6,000 Operating Expense 46,000 41,000 Interest Expernse 9,000 10,200 Income Tax Expense 10,200 9,600 Net Income 154,000 103 200 2. Other Infomation: 2019 2020 Total Assets $250,000 $190,000 Construction in Progress 15,000 14,200 intangible Assets 7,000 7,000 Long-term debts 70,000 70,000 Current liabilities 40,000 50,000 Preferred Stocks, 5% 10,000 10,000 Common Stocks. 210,000 150,000 Dividend For Common shares 84,000 60,000 Market Price of Common Shares 16 10 3. Common Stock outstanding information: *No change in outstanding common shares during 2019. in 2020 the following changes occurred: January 1.2020 (Beginning) 40,000 April 1. 2020 Shares issued 20,000 July 1. 2020 Purchased Treasury shares 6,000 Sept 30. 2020 Shares issued 8,000 November 1.2020 Stock Dividend 10% issued Dec 31.2020 Shares issued 1,950…
Philly Corporation Philly Corporation Income Statement Comparative Account Information Relating to Operations For the Year Ended December 31, 2020 For the Year Ended December 31, 2020 2020 2019 Sales Revenue 680,000 Accounts receivable -net 78,000 65,000 Cost of goods sold 355,000 Prepaid insurance 5,000 6,000 Salaries expense 50,000 Equipment 111,100 122,400 Depreciation expense equipment 6,800 Accumulated Depreciation 13,800 14,600 Interest expense 8,000 Land 56,000 36,000 Bad debt expense 2,400 Accounts Payable 59,000 47,000 Loss on sale of equipment 4,800 Interest payable 600 1,500 Miscellaneous…

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