Additional data: 1. Depreciation expense was $17,300. 2. Dividends declared and paid were $19,860. 3. During the year, equipment was sold for $6,600 cash. This equipment originally cost $17,600 and had accumulated depreciation of $11,000 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and inventory purchases are on account. Prepare a statement of cash flows for Swifty Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SWIFTY COMPANY Statement of Cash Flows choose the accounting period select an opening name for section one select an item $enter a dollar amount select between addition and deduction cash payments: 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 four 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 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 enter a total amount for three sections enter a dollar amount select an item enter a dollar amount select a closing name for this statement $enter a total of the two previous amounts

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Additional data:

1.   Depreciation expense was $17,300.
2.   Dividends declared and paid were $19,860.
3.   During the year, equipment was sold for $6,600 cash. This equipment originally cost $17,600 and had accumulated depreciation of $11,000 at the time of sale.
4.   Bonds were redeemed at their carrying value.
5.   Common stock was issued at par for cash.


Further analysis reveals the following.

1.   Accounts payable pertain to merchandise suppliers.
2.   All operating expenses except for depreciation were paid in cash.
3.   All depreciation expense is in the selling expense category.
4.   All sales and inventory purchases are on account.

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

SWIFTY COMPANY
Statement of Cash Flows
choose the accounting period                                                                       
select an opening name for section one                                                                       
   
select an item                                                                       
 
$enter a dollar amount 
select between addition and deduction                                                                        cash payments:
   
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 four 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 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
     
enter a total amount for three sections                                                                       
 
enter a dollar amount
select an item                                                                       
  enter a dollar amount
select a closing name for this statement                                                                       
 
$enter a total of the two previous amounts 
SWIFTY COMPANY
Comparative Balance Sheets
December 31
Assets
2022
2021
Cash
$37,200
$19,700
Accounts receivable
33,000
18,400
Inventory
30,800
20,800
Property, plant, and equipment
60,000
77,600
Accumulated depreciation
(29,800)
(23,500)
Total
$131,200
$113,000
Liabilities and Stockholders' Equity
Accounts payable
$28,300
$ 16,700
Income taxes payable
7,300
8,500
Bonds payable
26,500
33,900
Common stock
17,700
14,000
Retained earnings
51,400
39,900
Total
$131,200
$113,000
Transcribed Image Text:SWIFTY COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,200 $19,700 Accounts receivable 33,000 18,400 Inventory 30,800 20,800 Property, plant, and equipment 60,000 77,600 Accumulated depreciation (29,800) (23,500) Total $131,200 $113,000 Liabilities and Stockholders' Equity Accounts payable $28,300 $ 16,700 Income taxes payable 7,300 8,500 Bonds payable 26,500 33,900 Common stock 17,700 14,000 Retained earnings 51,400 39,900 Total $131,200 $113,000
SWIFTY COMPANY
Income Statement
For the Year Ended December 31, 2022
Sales revenue
$241,400
Cost of goods sold
175,800
Gross profit
65,600
Selling expenses
$17,250
Administrative expenses
5,750
23,000
Income from operations
42,600
Interest expense
3,400
Income before income taxes
39,200
Income tax expense
7,840
Net income
$31,360
Transcribed Image Text:SWIFTY COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $241,400 Cost of goods sold 175,800 Gross profit 65,600 Selling expenses $17,250 Administrative expenses 5,750 23,000 Income from operations 42,600 Interest expense 3,400 Income before income taxes 39,200 Income tax expense 7,840 Net income $31,360
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