Below are the unclassified financial statements for Rorrow Ltd. for the year ended December 31, 2020: Required: Cash Accounts receivable (net) Inventory Prepaid insurance expenses Equipment Accumulated depreciation, equipment Total assets Rorrow Ltd. Balance Sheet As at December 31, 2020 Accounts payable Salaries and wages payable Accrued interest payable Bonds payable, due July 31, 2028 Common shares 370 Statement of Cash Flows Retained earnings Total liabilities and shareholders' equity Expenses Cost of goods sold Salaries and benefits expense Depreciation expense Interest expense Insurance expense Income tax expense 2019 2020 $152,975 $ 86,000 Net Income 321,640 239,080 801,410 855,700 37,840 30,100 Rorrow Ltd. Income Statement For the Year Ended December 31, 2020 Sales 2,564,950 2,156,450 (625,220) (524,600) $3,253,595 $2.842,750 $ 478,900 $ 494,500 312,300 309,000 97,180 430,000 1,509,300 1,204,000 307,450 524,385 $3,253,595 $2.842,730 106,210 322,500 $5,258,246 3,150,180 754,186 100,620 258,129 95,976 253,098 4,612,189 646.057 a. Complete the direct method worksheet for the operating activities section for the year ended December 31, 2020. b. Prepare the operating activities section for Rorrow Ltd. for the year ended December 31, 2020.
Below are the unclassified financial statements for Rorrow Ltd. for the year ended December 31, 2020: Required: Cash Accounts receivable (net) Inventory Prepaid insurance expenses Equipment Accumulated depreciation, equipment Total assets Rorrow Ltd. Balance Sheet As at December 31, 2020 Accounts payable Salaries and wages payable Accrued interest payable Bonds payable, due July 31, 2028 Common shares 370 Statement of Cash Flows Retained earnings Total liabilities and shareholders' equity Expenses Cost of goods sold Salaries and benefits expense Depreciation expense Interest expense Insurance expense Income tax expense 2019 2020 $152,975 $ 86,000 Net Income 321,640 239,080 801,410 855,700 37,840 30,100 Rorrow Ltd. Income Statement For the Year Ended December 31, 2020 Sales 2,564,950 2,156,450 (625,220) (524,600) $3,253,595 $2.842,750 $ 478,900 $ 494,500 312,300 309,000 97,180 430,000 1,509,300 1,204,000 307,450 524,385 $3,253,595 $2.842,730 106,210 322,500 $5,258,246 3,150,180 754,186 100,620 258,129 95,976 253,098 4,612,189 646.057 a. Complete the direct method worksheet for the operating activities section for the year ended December 31, 2020. b. Prepare the operating activities section for Rorrow Ltd. for the year ended December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:EXERCISE 20-2
Below are the unclassified financial statements for Rorrow Ltd. for the year ended December
31, 2020:
Required:
Rorrow Ltd.
Balance Sheet
As at December 31, 2020
Cash
Accounts receivable (net)
Inventory
Prepaid insurance expenses
Equipment
Accumulated depreciation, equipment
Total assets
EXERCISE 20-3
Accounts payable
Salaries and wages payable
370 Statement of Cash Flows
Accrued interest payable
Bonds payable, due July 31, 2028
Common shares
Retained earnings
Total liabilities and shareholders' equity
Cost of goods sold
Salaries and benefits expense
Depreciation expense
Interest expense
Insurance expense
Income tax expense
2020
2019
$ 152,975 $ 86,000
239,080
Net Income
321,640
801,410
37,840
Rorrow Ltd.
Income Statement
For the Year Ended December 31, 2020
Sales
Expenses
2,564,950 2,156,450
(625,220)
(524,600)
$3,253,505 $2.842,750
$ 478,900 $ 494,500
309,000
97,180
322,500
430,000
1,509,300 1,204,000
307,450
524,385
$3,253,595 $2,842,730
312,300
106,210
855,700
30,100
$5,258,246
3,150,180
754,186
100,620
258,129
95,976
253,098
4,612,189
$646.057
a. Complete the direct method worksheet for the operating activities section for the year
ended December 31, 2020.
b. Prepare the operating activities section for Rorrow Ltd. for the year ended December 31,
2020.
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