Condensed financial data of Coronado Inc. follow. CORONADO INC. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $81,100 $49,000 Accounts receivable 87,700 38,100 Inventory 111,200 102,100 Prepaid expenses 29,000 27,500 Long-term investments 140,900 113,300 Plant assets 285,000 242,400 Accumulated depreciation (46,800) (48,400) Total $688,100 $524,000 Liabilities and Stockholders’ Equity Accounts payable $110,000 $67,400 Accrued expenses payable 16,500 21,500 Bonds payable 119,300 149,300 Common stock 219,900 174,600 Retained earnings 222,400 111,200 Total $688,100 $524,000 CORONADO INC. Income Statement For the Year Ended December 31, 2022 Sales revenue $376,500 Less: Cost of goods sold $135,600 Operating expenses, excluding depreciation 11,400 Depreciation expense 47,400 Income tax expense 26,500 Interest expense 5,000 Loss on disposal of plant assets 7,800 233,700 Net income $142,800 Additional information: 1. New plant assets costing $100,600 were purchased for cash during the year. 2. Old plant assets having an original cost of $58,000 and accumulated depreciation of $49,000 were sold for $1,200 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $31,600 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. Further analysis reveals that accounts payable pertain to merchandise creditors.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Condensed financial data of Coronado Inc. follow.

CORONADO INC. Comparative Balance Sheets December 31
Assets	2022	2021
Cash	$81,100		$49,000
Accounts receivable	87,700		38,100
Inventory	111,200		102,100
Prepaid expenses	29,000		27,500
Long-term investments	140,900		113,300
Plant assets	285,000		242,400
Accumulated depreciation	(46,800)		(48,400)
Total	$688,100		$524,000

Liabilities and Stockholders’ Equity
Accounts payable	$110,000		$67,400
Accrued expenses payable	16,500		21,500
Bonds payable	119,300		149,300
Common stock	219,900		174,600
Retained earnings	222,400		111,200
Total	$688,100		$524,000

CORONADO INC. Income Statement For the Year Ended December 31, 2022
Sales revenue		$376,500
Less:
Cost of goods sold	$135,600
Operating expenses, excluding depreciation	11,400
Depreciation expense	47,400
Income tax expense	26,500
Interest expense	5,000
Loss on disposal of plant assets	7,800	233,700
Net income		$142,800

Additional information:

1.		New plant assets costing $100,600 were purchased for cash during the year.
2.		Old plant assets having an original cost of $58,000 and accumulated depreciation of $49,000 were sold for $1,200 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $31,600 was declared and paid during the year.
5.		Common stock was issued at par for cash.
6.		There were no significant noncash transactions.

Further analysis reveals that accounts payable pertain to merchandise creditors.

CORONADO INC.
Statement of Cash Flows - Direct Method
For the Year Ended December 31, 2022
Cash Flows from Operating Activities
✓ cash payments:
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