Condensed financial data of Sweet Company for 2020 and 2019 are presented below. SWEET COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,800 $1,130 Receivables 1,770 1,320 Inventory 1,560 1,890 Plant assets 1,900 1,700 Accumulated depreciation (1,220 ) (1,180 ) Long-term investments (held-to-maturity) 1,300 1,430 $7,110 $6,290 Accounts payable $1,220 $890 Accrued liabilities 190 250 Bonds payable 1,410 1,520 Common stock 1,870 1,730 Retained earnings 2,420 1,900 $7,110 $6,290 SWEET COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,860 Cost of goods sold 4,710 Gross margin 2,150 Selling and administrative expenses 920 Income from operations 1,230 Other revenues and gains Gain on sale of investments 80 Income before tax 1,310 Income tax expense 530 Net income 780 Cash dividends 260 Income retained in business $520 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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 Sweet Company for 2020 and 2019 are presented below.

SWEET COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
	2020		2019
Cash	$1,800			$1,130
Receivables	1,770			1,320
Inventory	1,560			1,890
Plant assets	1,900			1,700
Accumulated depreciation	(1,220	)		(1,180	)
Long-term investments (held-to-maturity)	1,300			1,430
	$7,110			$6,290

Accounts payable	$1,220			$890
Accrued liabilities	190			250
Bonds payable	1,410			1,520
Common stock	1,870			1,730
Retained earnings	2,420			1,900
	$7,110			$6,290

SWEET COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue		$6,860
Cost of goods sold		4,710
Gross margin		2,150
Selling and administrative expenses		920
Income from operations		1,230
Other revenues and gains
Gain on sale of investments		80
Income before tax		1,310
Income tax expense		530
Net income		780
Cash dividends		260
Income retained in business		$520

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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