8.Grouper Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows.GROUPER COMPANYSTATEMENT OF INCOME AND RETAINED EARNINGSFOR THE YEAR ENDED DECEMBER 31, 2020($000 OMITTED)Sales revenue $3,840Expenses Cost of goods sold $1,190 Salaries and benefits 720 Heat, light, and power 70 Depreciation 80 Property taxes 20 Patent amortization 30 Miscellaneous expenses 10 Interest 30 2,150Income before income taxes 1,690Income taxes 845Net income 845Retained earnings—Jan. 1, 2020 300 1,145Stock dividend declared and issued 615Retained earnings—Dec. 31, 2020 $530 GROUPER COMPANYCOMPARATIVE BALANCE SHEETSAS OF DECEMBER 31($000 OMITTED)Assets 2020 2019Current assets Cash $337 $90 U.S. Treasury notes (available-for-sale) 10 50 Accounts receivable 780 490 Inventory 710 570 Total current assets 1,837 1,200 Long-term assets Land 160 80 Buildings and equipment 920 610 Accumulated depreciation—buildings and equipment (190) (110) Patents (less amortization) 120 150 Total long-term assets 1,010 730 Total assets $2,847 $1,930 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $423 $360 Income taxes payable 39 30 Notes payable 340 340 Total current liabilities 802 730 Long-term notes payable—due 2022 180 180 Total liabilities 982 910 Stockholders’ equity Common stock 1,335 720 Retained earnings 530 300 Total stockholders’ equity 1,865 1,020 Total liabilities and stockholders’ equity $2,847 $1,930 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)GROUPER COMPANYStatement of Cash Flows ($000 Omitted) $ $ $

The cash flow statement is prepared to record the cash flow from various activities during the…

Answered: Grouper Company has not yet prepared a…

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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Grouper Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows.

GROUPER COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED)
Sales revenue		$3,840
Expenses
Cost of goods sold	$1,190
Salaries and benefits	720
Heat, light, and power	70
Depreciation	80
Property taxes	20
Patent amortization	30
Miscellaneous expenses	10
Interest	30	2,150
Income before income taxes		1,690
Income taxes		845
Net income		845
Retained earnings—Jan. 1, 2020		300
		1,145
Stock dividend declared and issued		615
Retained earnings—Dec. 31, 2020		$530

GROUPER COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED)
Assets	2020		2019
Current assets
Cash	$337			$90
U.S. Treasury notes (available-for-sale)	10			50
Accounts receivable	780			490
Inventory	710			570
Total current assets	1,837			1,200
Long-term assets
Land	160			80
Buildings and equipment	920			610
Accumulated depreciation—buildings and equipment	(190	)		(110	)
Patents (less amortization)	120			150
Total long-term assets	1,010			730
Total assets	$2,847			$1,930

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$423			$360
Income taxes payable	39			30
Notes payable	340			340
Total current liabilities	802			730
Long-term notes payable—due 2022	180			180
Total liabilities	982			910
Stockholders’ equity
Common stock	1,335			720
Retained earnings	530			300
Total stockholders’ equity	1,865			1,020
Total liabilities and stockholders’ equity	$2,847			$1,930

Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

GROUPER COMPANY Statement of Cash Flows ($000 Omitted)

		$

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