Cash Flow Statement Prepare a Cash Flow Statement for Red Company for the year ended December 31, 2021. Red Company Balance Sheets December 31, 2021 2020 ASSETS Cash Accounts receivable Inventory Investments (long-term) $ 186,800 250,000 293,000 $ 115,600 247,000 217,800 130,000 Land Equipment Accumulated depreciation 290,000 735,200 (221.800) $ 1,533,200 557,200 (174,800) $ 1,092,800 LIABILITIES AND EQUITY Accounts payable Salaries payable Dividends payable Common stock, $10 par Paid-in capital in excess of par Retained earnings $ 164,800 13,400 33,200 200,000 640,000 481,800 $ 1,533,200 $ 148,000 12,000 31,400 140,000 400,000 361,400 $ 1,092,800 Red Company
Cash Flow Statement Prepare a Cash Flow Statement for Red Company for the year ended December 31, 2021. Red Company Balance Sheets December 31, 2021 2020 ASSETS Cash Accounts receivable Inventory Investments (long-term) $ 186,800 250,000 293,000 $ 115,600 247,000 217,800 130,000 Land Equipment Accumulated depreciation 290,000 735,200 (221.800) $ 1,533,200 557,200 (174,800) $ 1,092,800 LIABILITIES AND EQUITY Accounts payable Salaries payable Dividends payable Common stock, $10 par Paid-in capital in excess of par Retained earnings $ 164,800 13,400 33,200 200,000 640,000 481,800 $ 1,533,200 $ 148,000 12,000 31,400 140,000 400,000 361,400 $ 1,092,800 Red Company
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:C. Cash Flow Statement
Prepare a Cash Flow Statement for Red Company for the year ended December 31, 2021.
Red Company
Balance Sheets
December 31,
2021
2020
ASSETS
$ 186,800
$ 115,600
247,000
Cash
Accounts receivable
Inventory
Investments (long-term)
250,000
293,000
217,800
130,000
290,000
735,200
(221,800)
$ 1,533,200
Land
557,200
Equipment
Accumulated depreciation
(174,800)
$ 1,092,800
LIABILITIES AND EQUITY
Accounts payable
Salaries payable
Dividends payable
Common stock, $10 par
Paid-in capital in excess of par
Retained earnings
$ 164,800
13,400
33,200
200,000
640,000
481,800
$ 1,533,200
$ 148,000
12,000
31,400
140,000
400,000
361400
$ 1,092,800
Red Company
Income Statement
Year Ended December 31, 2021
$ 1,449,400
826,200
603,200
Sales
Cost of goods sold
Gross profit
Operating expenses:
47,000
Depreciation expense
Other operating expenses
Total operating expenses
205,800
252,800
Other income:
60.000
410,400
146,400
$ 264,000
Gain on sale of long-term investments
Income before income tax
Income tax expense
Net income
Other information:
Equipment was acquired for $78,000.
Land was purchased for $290,000.
The investments were sold for $190,000.
The common stock was issued for $200,000.
Cash dividends declared for the year totaled $143,600.
$100,000 of equipment was received in exchange for common stock.
a.
b.
C.
d.
e.
f.
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