An abbreviated set of financial statements for Caraba's Company for 2020 and 2019 is shown below: Caraba's Company Income Statement For the Year Ended December 31, 2020 Sales $553,000 Investment income 26,000 Gain on sale of investments 3,500 $582,500 Less: Selling & administrative expenses $221,600 Depreciation expense 15,000 Interest expense 3,900 Income taxes expense 6,500 247,000 Net Income $335,500 Comparative Balance Sheets December 31 2020 2019 Cash $209,000 $49,900 Accounts receivable 160,300 63,700 Investments 117,000 126,100 Equipment (net) 146,200 80,400 Land 312,000 276,300 Total Assets $944,500 $596,400 Accounts payable $130,000 $87,500 Mortgage payable 65,000 97,400 Common stock 266,500 238,000 Retained earnings 483,000 173,500 Total Liabilities & Shareholders' Equity $944,500 $596,400 Required: Prepare the cash flows from investing and financing activities sections of the 2020 statement of cash flows. For those boxes in which you must enter subtractive or negative numbers use a minus sign.
An abbreviated set of financial statements for Caraba's Company for 2020 and 2019 is shown below: Caraba's Company Income Statement For the Year Ended December 31, 2020 Sales $553,000 Investment income 26,000 Gain on sale of investments 3,500 $582,500 Less: Selling & administrative expenses $221,600 Depreciation expense 15,000 Interest expense 3,900 Income taxes expense 6,500 247,000 Net Income $335,500 Comparative Balance Sheets December 31 2020 2019 Cash $209,000 $49,900 Accounts receivable 160,300 63,700 Investments 117,000 126,100 Equipment (net) 146,200 80,400 Land 312,000 276,300 Total Assets $944,500 $596,400 Accounts payable $130,000 $87,500 Mortgage payable 65,000 97,400 Common stock 266,500 238,000 Retained earnings 483,000 173,500 Total Liabilities & Shareholders' Equity $944,500 $596,400 Required: Prepare the cash flows from investing and financing activities sections of the 2020 statement of cash flows. For those boxes in which you must enter subtractive or negative numbers use a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
An abbreviated set of financial statements for Caraba's Company for 2020 and 2019 is shown below:
| Caraba's Company Income Statement For the Year Ended December 31, 2020 |
||
| Sales | $553,000 | |
| Investment income | 26,000 | |
| Gain on sale of investments | 3,500 | $582,500 |
| Less: | ||
| Selling & administrative expenses | $221,600 | |
| |
15,000 | |
| Interest expense | 3,900 | |
| Income taxes expense | 6,500 | 247,000 |
| Net Income | $335,500 |
| Comparative Balance Sheets December 31 |
||
| 2020 | 2019 | |
| Cash | $209,000 | $49,900 |
| 160,300 | 63,700 | |
| Investments | 117,000 | 126,100 |
| Equipment (net) | 146,200 | 80,400 |
| Land | 312,000 | 276,300 |
| Total Assets | $944,500 | $596,400 |
| Accounts payable | $130,000 | $87,500 |
| Mortgage payable | 65,000 | 97,400 |
| Common stock | 266,500 | 238,000 |
| 483,000 | 173,500 | |
| Total Liabilities & Shareholders' Equity | $944,500 | $596,400 |
Required:
Prepare the
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