Blue Spruce Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2023: Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Total assets BLUE SPRUCE Inc. Comparative Statement of Financial Position December 31 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Gain on disposal of equipment Income before income tax Net income Income tax expense Accounts payable Income tax payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity $291,740 1. Additional information: 2. 3. 2023 $59,340 57,300 42,900 6,200 156,000 (30,000) $291,740 $52,100 3,500 61,500 BLUE SPRUCE Inc. Income Statement Year Ended December 31, 2023 121,400 53,240 $12,700 (2,900) 2022 $54,100 126,000 (25,700) $270,900 $38,500 50,000 62,500 4,000 69,500 121,400 $388,000 205,000 $270,900 183,000 116,200 66,800 9,800 57,000 6,400 27,360 $29,640 35,100 Dividends on common shares in the amount of $11,500 were declared and paid during 2023. Depreciation expense of $19,700 is included in operating expenses. Equipment with a cost of $22,000 that was 70% depreciated was sold during 2023.
Blue Spruce Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2023: Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Total assets BLUE SPRUCE Inc. Comparative Statement of Financial Position December 31 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Gain on disposal of equipment Income before income tax Net income Income tax expense Accounts payable Income tax payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity $291,740 1. Additional information: 2. 3. 2023 $59,340 57,300 42,900 6,200 156,000 (30,000) $291,740 $52,100 3,500 61,500 BLUE SPRUCE Inc. Income Statement Year Ended December 31, 2023 121,400 53,240 $12,700 (2,900) 2022 $54,100 126,000 (25,700) $270,900 $38,500 50,000 62,500 4,000 69,500 121,400 $388,000 205,000 $270,900 183,000 116,200 66,800 9,800 57,000 6,400 27,360 $29,640 35,100 Dividends on common shares in the amount of $11,500 were declared and paid during 2023. Depreciation expense of $19,700 is included in operating expenses. Equipment with a cost of $22,000 that was 70% depreciated was sold during 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blue Spruce Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2023:
Cash
Accounts receivable
Inventory
Prepaid rent
Equipment
Accumulated depreciation-equipment
Total assets
BLUE SPRUCE Inc.
Comparative Statement of Financial Position
December 31
Sales revenue
Cost of goods sold
Gross margin
Operating expenses
Operating income
Interest expense
Gain on disposal of equipment
Income before income tax
Net income
Income tax expense
Accounts payable
Income tax payable
Long-term loans payable
Common shares
Retained earnings
Total liabilities and shareholders' equity $291,740
Additional information:
1.
2023
3.
$59,340
57,300
42,900
6,200
156,000
(30,000)
$291,740
$52,100
BLUE SPRUCE Inc.
Income Statement
Year Ended December 31, 2023
3,500
61,500
121,400
53,240
$12,700
(2,900)
2022
$54,100
126,000
(25,700)
$270,900
$38,500
$388,000
205,000
183,000
116,200
50,000
121,400
66,800
62,500
9,800
4,000
$270,900
57,000
27,360
$29,640
6,400
69,500
35,100
Dividends on common shares in the amount of $11,500 were declared and paid during 2023.
2. Depreciation expense of $19,700 is included in operating expenses.
Equipment with a cost of $22,000 that was 70% depreciated was sold during 2023.
![Prepare a statement of cash flows 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).)
Cash Flows from Operating Activities
Cash Received from Customers
Cash Paid to Suppliers for Goods
Cash Paid for Other Operating Expenses
Cash Paid for Taxes
Cash Paid for Interest
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Purchase of Equipment
BLUE SPRUCE Inc.
Statement of Cash Flows (Direct Method)
For the Year Ended December 31, 2023
Proceeds on Sale of Equipment
Net Cash Used by Investing Activities
Cash Flows from Financing Activities
Principal Payments on Long-Term Loan
Dividend Paid
Net Cash Used by Financing Activities
Net Increase in Cash and Cash Equivalents
Cash, January 1, 2023
Cash, December 31, 2023
$
171800
98700 i
$
380700
[0]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84fefd46-9e74-4d61-9ac5-d103349d245d%2F61fb6ac3-faec-49bf-9ad9-069864e34bf9%2F7lc3c48_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Prepare a statement of cash flows 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).)
Cash Flows from Operating Activities
Cash Received from Customers
Cash Paid to Suppliers for Goods
Cash Paid for Other Operating Expenses
Cash Paid for Taxes
Cash Paid for Interest
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Purchase of Equipment
BLUE SPRUCE Inc.
Statement of Cash Flows (Direct Method)
For the Year Ended December 31, 2023
Proceeds on Sale of Equipment
Net Cash Used by Investing Activities
Cash Flows from Financing Activities
Principal Payments on Long-Term Loan
Dividend Paid
Net Cash Used by Financing Activities
Net Increase in Cash and Cash Equivalents
Cash, January 1, 2023
Cash, December 31, 2023
$
171800
98700 i
$
380700
[0]
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