26.Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2020.CORONADO INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19Cash $5,900 $7,000 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 35,000 18,200 Inventory 40,000 60,500 Prepaid rent 5,000 4,100 Equipment 152,900 131,100 Accumulated depreciation—equipment (35,200) (25,100)Copyrights 45,800 50,000 Total assets $310,800 $297,300 Accounts payable $46,100 $40,100 Income taxes payable 3,900 5,900 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,100 10,000 Long-term loans payable 60,400 69,300 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 54,300 38,000 Total liabilities & stockholders’ equity $310,800 $297,300 CORONADO INC.INCOME STATEMENTFOR THE YEAR ENDING DECEMBER 31, 2020Sales revenue $332,700Cost of goods sold 176,000Gross profit 156,700Operating expenses 119,300Operating income 37,400Interest expense $11,500 Gain on sale of equipment 2,100 9,400Income before tax 28,000Income tax expense 5,600Net income $22,400Additional information:1. Dividends in the amount of $6,100 were declared and paid during 2020.2. Depreciation expense and amortization expense are included in operating expenses.3. No unrealized gains or losses have occurred on the investments during the year.4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 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).)CORONADO INC.Statement of Cash Flowschoose the accounting period select an opening name for section one select an item $enter a dollar amount Adjustments to reconcile net income to select a subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the adjustmentsselect a closing name for section one enter a total amount for section one select an opening name for section two select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select a closing name for section two enter a total amount for section two select an opening name for section three select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select a closing name for section three enter a total amount for section three select an item enter a total amount for three sectionsselect an item enter a dollar amountselect a closing name for this statement $enter a total of the two previous amounts

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Answered: Coronado Inc., a greeting card company,…

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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26.

Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2020.

CORONADO INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
	12/31/20		12/31/19
Cash	$5,900			$7,000
Accounts receivable	61,400			51,500
Short-term debt investments (available-for-sale)	35,000			18,200
Inventory	40,000			60,500
Prepaid rent	5,000			4,100
Equipment	152,900			131,100
Accumulated depreciation—equipment	(35,200	)		(25,100	)
Copyrights	45,800			50,000
Total assets	$310,800			$297,300

Accounts payable	$46,100			$40,100
Income taxes payable	3,900			5,900
Salaries and wages payable	8,000			4,000
Short-term loans payable	8,100			10,000
Long-term loans payable	60,400			69,300
Common stock, $10 par	100,000			100,000
Contributed capital, common stock	30,000			30,000
Retained earnings	54,300			38,000
Total liabilities & stockholders’ equity	$310,800			$297,300

CORONADO INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020
Sales revenue		$332,700
Cost of goods sold		176,000
Gross profit		156,700
Operating expenses		119,300
Operating income		37,400
Interest expense	$11,500
Gain on sale of equipment	2,100	9,400
Income before tax		28,000
Income tax expense		5,600
Net income		$22,400

Additional information:

1.		Dividends in the amount of $6,100 were declared and paid during 2020.
2.		Depreciation expense and amortization expense are included in operating expenses.
3.		No unrealized gains or losses have occurred on the investments during the year.
4.		Equipment that had a cost of $19,800 and was 70% depreciated was sold during 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).)

CORONADO INC. Statement of Cash Flows choose the accounting period
select an opening name for section one
select an item		$enter a dollar amount
Adjustments to reconcile net income to
select a subsection name
select an item	$enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
		enter a subtotal of the adjustments
select a closing name for section one		enter a total amount for section one

select an opening name for section two
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select a closing name for section two		enter a total amount for section two

select an opening name for section three
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select a closing name for section three		enter a total amount for section three

select an item		enter a total amount for three sections
select an item		enter a dollar amount
select a closing name for this statement		$enter a total of the two previous amounts

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Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2020. CORONADO INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $5,900 $7,000 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale)