Kingbird Inc., had the following condensed balance sheet at the end of operations for 2019. KINGBIRD INC. BALANCE SHEET DECEMBER 31, 2019 Cash $8,400 Current liabilities $15,100 Current assets other than cash 29,300 Long-term notes payable 25,700 Equity invesments 19,800 Bonds payable 25,000 Plant assets (net) 67,700 Common stock 75,000 Land 40,400 Retained earnings 24,800 $165,600 $165,600 During 2020, the following occurred. 1. A tract of land was purchased for $9,100. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,000 in common stock was issued at par. 4. Dividends totaling $9,500 were paid to stockholders. 5. Net income was $30,400 after allowing depreciation of $13,600. 6. Land was purchased through the issuance of $22,600 in bonds. 7. Kingbird Inc. sold part of its investment portfolio for $12,700. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2020. 8. Both current assets (other than cash) and current liabilities remained at the same amount. (a) Prepare a statement of cash flows for 2020 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).) KINGBIRD INC. Statement of Cash Flows $ Adjustments to reconcile net income to $ $ $

Kingbird Inc., had the following condensed balance sheet at the end of operations for 2019. KINGBIRD INC. BALANCE SHEET DECEMBER 31, 2019 Cash $8,400 Current liabilities $15,100 Current assets other than cash 29,300 Long-term notes payable 25,700 Equity invesments 19,800 Bonds payable 25,000 Plant assets (net) 67,700 Common stock 75,000 Land 40,400 Retained earnings 24,800 $165,600 $165,600 During 2020, the following occurred. 1. A tract of land was purchased for $9,100. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,000 in common stock was issued at par. 4. Dividends totaling $9,500 were paid to stockholders. 5. Net income was $30,400 after allowing depreciation of $13,600. 6. Land was purchased through the issuance of $22,600 in bonds. 7. Kingbird Inc. sold part of its investment portfolio for $12,700. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2020. 8. Both current assets (other than cash) and current liabilities remained at the same amount. (a) Prepare a statement of cash flows for 2020 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).) KINGBIRD INC. Statement of Cash Flows $ Adjustments to reconcile net income to $ $ $

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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(a)

Prepare a statement of cash flows for 2020 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).)

KINGBIRD INC. Statement of Cash Flows

		$
Adjustments to reconcile net income to

	$
















		$


		$

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KINGBIRD INC. BALANCE SHEET DECEMBER 31, 2019
Cash	$8,400	Current liabilities	$15,100
Current assets other than cash	29,300	Long-term notes payable	25,700
Equity invesments	19,800	Bonds payable	25,000
Plant assets (net)	67,700	Common stock	75,000
Land	40,400	Retained earnings	24,800
	$165,600		$165,600

1.		A tract of land was purchased for $9,100.
2.		Bonds payable in the amount of $15,000 were redeemed at par.
3.		An additional $10,000 in common stock was issued at par.
4.		Dividends totaling $9,500 were paid to stockholders.
5.		Net income was $30,400 after allowing depreciation of $13,600.
6.		Land was purchased through the issuance of $22,600 in bonds.
7.		Kingbird Inc. sold part of its investment portfolio for $12,700. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2020.
8.		Both current assets (other than cash) and current liabilities remained at the same amount.