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Land was sold for cash at its carrying amount. The short-term investments will mature in February 2022. Cash dividends were declared and paid in 2021. New equipment with a cost of $167,900 was purchased for cash, and old equipment was sold at its carrying amount. Long-term notes of $19,500 were paid in cash, and notes of $39,500 were converted to shares.

Land was sold for cash at its carrying amount. The short-term investments will mature in February 2022. Cash dividends were declared and paid in 2021. New equipment with a cost of $167,900 was purchased for cash, and old equipment was sold at its carrying amount. Long-term notes of $19,500 were paid in cash, and notes of $39,500 were converted to shares.

FINANCIAL ACCOUNTING
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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Additional information is as follows:

  1. Land was sold for cash at its carrying amount.
  2. The short-term investments will mature in February 2022.
  3. Cash dividends were declared and paid in 2021.
  4. New equipment with a cost of $167,900 was purchased for cash, and old equipment was sold at its carrying amount.
  5. Long-term notes of $19,500 were paid in cash, and notes of $39,500 were converted to shares.
Assets Cash MIKOS INC. Comparative Statements of Financial Position December 31 Short-term investments Accounts receivable Inventories, at cost Prepaid expenses Land Property, plant, and equipment, net Intangible assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Accrued liabilities Long-term notes payable Contributed capital Retained earnings 2021 Operating expenses Interest expense Earnings before income taxes Income tax expense Net earnings $ 10,900 $ 18,900 77,300 44,700 77,500 33,600 57,800 41,900 5,900 9,800 52,600 79,500 287,600 188,500 25,900 31,800 $595,500 $448,700 2020 $ 18,900 $ 43,800 9,800 2,900 -0- MIKOS INC. Statement of Earnings For the Year Ended December 31, 2021 Sales Cost of sales Amortization expense-intangible assets Depreciation expense-property, plant, and equipment 11,900 129,000 188,000 238,000 69,500 187,900 144,500 $595,500 $448,700 $449,000 5,900 34,900 240,000 13,900 $907,000 743,700 163,300 48,990 $114,310
Transcribed Image Text:Assets Cash MIKOS INC. Comparative Statements of Financial Position December 31 Short-term investments Accounts receivable Inventories, at cost Prepaid expenses Land Property, plant, and equipment, net Intangible assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Accrued liabilities Long-term notes payable Contributed capital Retained earnings 2021 Operating expenses Interest expense Earnings before income taxes Income tax expense Net earnings $ 10,900 $ 18,900 77,300 44,700 77,500 33,600 57,800 41,900 5,900 9,800 52,600 79,500 287,600 188,500 25,900 31,800 $595,500 $448,700 2020 $ 18,900 $ 43,800 9,800 2,900 -0- MIKOS INC. Statement of Earnings For the Year Ended December 31, 2021 Sales Cost of sales Amortization expense-intangible assets Depreciation expense-property, plant, and equipment 11,900 129,000 188,000 238,000 69,500 187,900 144,500 $595,500 $448,700 $449,000 5,900 34,900 240,000 13,900 $907,000 743,700 163,300 48,990 $114,310
Cash flows from operating activities: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Decrease in accounts payable Decrease in prepaid expenses Depreciation and amortization expense Increase in accounts receivable Increase in accrued liabilities Increase in inventory Increase in income tax payable Net cash flow from operating activities Cash flows from investing activities: Sale of land Purchase of equipment Sale of equipment Net cash flow used for investing activities Cash flows from financing activities: Payment of cash dividends Repayment of long-term note Issuance of common shares Net cash flow from financing activities Net increase in cash and short-term investments Cash and short-term investments, beginning of year Cash and short-term investments, end of year $ $ 0 0 0 0 0
Transcribed Image Text:Cash flows from operating activities: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Decrease in accounts payable Decrease in prepaid expenses Depreciation and amortization expense Increase in accounts receivable Increase in accrued liabilities Increase in inventory Increase in income tax payable Net cash flow from operating activities Cash flows from investing activities: Sale of land Purchase of equipment Sale of equipment Net cash flow used for investing activities Cash flows from financing activities: Payment of cash dividends Repayment of long-term note Issuance of common shares Net cash flow from financing activities Net increase in cash and short-term investments Cash and short-term investments, beginning of year Cash and short-term investments, end of year $ $ 0 0 0 0 0
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