Exercise 23-11 Condensed financial data of Ivanhoe Company for 2020 and 2019 are presented below. IVANHOE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,770 $1,170 Receivables 1,780 1,300 Inventory 1,570 1,880 Plant assets 1,870 1,710 Accumulated depreciation (1,210 ) (1,190 ) Long-term investments (held-to-maturity) 1,290 1,430 $7,070 $6,300 Accounts payable $1,200 $900 Accrued liabilities 200 250 Bonds payable 1,430 1,580 Common stock 1,860 1,730 Retained earnings 2,380 1,840 $7,070 $6,300 IVANHOE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,820 Cost of goods sold 4,640 Gross margin 2,180 Selling and administrative expenses 910 Income from operations 1,270 Other revenues and gains Gain on sale of investments 80 Income before tax 1,350 Income tax expense 550 Net income 800 Cash dividends 260 Income retained in business $540 Additional information: During the year, $80 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.

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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Exercise 23-11

Condensed financial data of Ivanhoe Company for 2020 and 2019 are presented below.

IVANHOE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
	2020		2019
Cash	$1,770			$1,170
Receivables	1,780			1,300
Inventory	1,570			1,880
Plant assets	1,870			1,710
Accumulated depreciation	(1,210	)		(1,190	)
Long-term investments (held-to-maturity)	1,290			1,430
	$7,070			$6,300

Accounts payable	$1,200			$900
Accrued liabilities	200			250
Bonds payable	1,430			1,580
Common stock	1,860			1,730
Retained earnings	2,380			1,840
	$7,070			$6,300

IVANHOE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue		$6,820
Cost of goods sold		4,640
Gross margin		2,180
Selling and administrative expenses		910
Income from operations		1,270
Other revenues and gains
Gain on sale of investments		80
Income before tax		1,350
Income tax expense		550
Net income		800
Cash dividends		260
Income retained in business		$540

Additional information:

During the year, $80 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.

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