Carla Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows. CARLA COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED) Sales revenue $3,810 Expenses Cost of goods sold $1,200 Salaries and benefits 720 Heat, light, and power 70 Depreciation 80 Property taxes 20 Patent amortization 20 Miscellaneous expenses 10 Interest 30 2,150 Income before income taxes 1,660 Income taxes 830 Net income 830 Retained earnings—Jan. 1, 2020 350 1,180 Stock dividend declared and issued 650 Retained earnings—Dec. 31, 2020 $530 CARLA COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) Assets 2020 2019 Current assets Cash $341 $190 U.S. Treasury notes (available-for-sale) 10 50 Accounts receivable 780 480 Inventory 740 550 Total current assets 1,871 1,270 Long-term assets Land 150 70 Buildings and equipment 900 610 Accumulated depreciation—buildings and equipment (200 ) (120 ) Patents (less amortization) 110 130 Total long-term assets 960 690 Total assets $2,831 $1,960 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $384 $350 Income taxes payable 37 30 Notes payable 310 310 Total current liabilities 731 690 Long-term notes payable—due 2022 220 220 Total liabilities 951 910 Stockholders’ equity Common stock 1,350 700 Retained earnings 530 350 Total stockholders’ equity 1,880 1,050 Total liabilities and stockholders’ equity $2,831 $1,960 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CARLA COMPANY Statement of Cash Flows ($000 Omitted) $ $
Carla Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows. CARLA COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED) Sales revenue $3,810 Expenses Cost of goods sold $1,200 Salaries and benefits 720 Heat, light, and power 70 Depreciation 80 Property taxes 20 Patent amortization 20 Miscellaneous expenses 10 Interest 30 2,150 Income before income taxes 1,660 Income taxes 830 Net income 830 Retained earnings—Jan. 1, 2020 350 1,180 Stock dividend declared and issued 650 Retained earnings—Dec. 31, 2020 $530 CARLA COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) Assets 2020 2019 Current assets Cash $341 $190 U.S. Treasury notes (available-for-sale) 10 50 Accounts receivable 780 480 Inventory 740 550 Total current assets 1,871 1,270 Long-term assets Land 150 70 Buildings and equipment 900 610 Accumulated depreciation—buildings and equipment (200 ) (120 ) Patents (less amortization) 110 130 Total long-term assets 960 690 Total assets $2,831 $1,960 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $384 $350 Income taxes payable 37 30 Notes payable 310 310 Total current liabilities 731 690 Long-term notes payable—due 2022 220 220 Total liabilities 951 910 Stockholders’ equity Common stock 1,350 700 Retained earnings 530 350 Total stockholders’ equity 1,880 1,050 Total liabilities and stockholders’ equity $2,831 $1,960 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CARLA COMPANY Statement of Cash Flows ($000 Omitted) $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
8 new recheck
Carla Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows.
Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
CARLA COMPANY
STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED) |
||||
Sales revenue |
$3,810
|
|||
Expenses | ||||
Cost of goods sold |
$1,200
|
|||
Salaries and benefits |
720
|
|||
Heat, light, and power |
70
|
|||
|
80
|
|||
Property taxes |
20
|
|||
Patent amortization |
20
|
|||
Miscellaneous expenses |
10
|
|||
Interest |
30
|
2,150
|
||
Income before income taxes |
1,660
|
|||
Income taxes |
830
|
|||
Net income |
830
|
|||
Retained earnings—Jan. 1, 2020 |
350
|
|||
1,180
|
||||
Stock dividend declared and issued |
650
|
|||
Retained earnings—Dec. 31, 2020 |
$530
|
CARLA COMPANY
COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) |
||||||
Assets |
2020
|
2019
|
||||
Current assets | ||||||
Cash |
$341
|
$190
|
||||
U.S. Treasury notes (available-for-sale) |
10
|
50
|
||||
|
780
|
480
|
||||
Inventory |
740
|
550
|
||||
Total current assets |
1,871
|
1,270
|
||||
Long-term assets | ||||||
Land |
150
|
70
|
||||
Buildings and equipment |
900
|
610
|
||||
|
(200
|
)
|
(120
|
)
|
||
Patents (less amortization) |
110
|
130
|
||||
Total long-term assets |
960
|
690
|
||||
Total assets |
$2,831
|
$1,960
|
||||
Liabilities and |
||||||
Current liabilities | ||||||
Accounts payable |
$384
|
$350
|
||||
Income taxes payable |
37
|
30
|
||||
Notes payable |
310
|
310
|
||||
Total current liabilities |
731
|
690
|
||||
Long-term notes payable—due 2022 |
220
|
220
|
||||
Total liabilities |
951
|
910
|
||||
Stockholders’ equity | ||||||
Common stock |
1,350
|
700
|
||||
Retained earnings |
530
|
350
|
||||
Total stockholders’ equity |
1,880
|
1,050
|
||||
Total liabilities and stockholders’ equity |
$2,831
|
$1,960
|
Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
CARLA COMPANY
Statement of Cash Flows ($000 Omitted) |
||
|
||
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education