Oriole Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Oriole as of May 31, 2020, are as follows. The company is preparing its statement of cash flows. ORIOLE COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31 2020 2019 Current assets Cash $28,300 $20,100 Accounts receivable 74,800 57,600 Inventory 219,200 249,500 Prepaid expenses 8,900 7,100 Total current assets 331,200 334,300 Plant assets Plant assets 596,000 505,100 Less: Accumulated depreciation—plant assets 150,400 124,300 Net plant assets 445,600 380,800 Total assets $776,800 $715,100 Current liabilities Accounts payable $122,200 $114,700 Salaries and wages payable 47,700 72,100 Interest payable 26,700 24,700 Total current liabilities 196,600 211,500 Long-term debt Bonds payable 70,000 100,000 Total liabilities 266,600 311,500 Stockholders’ equity Common stock, $10 par 370,000 280,000 Retained earnings 140,200 123,600 Total stockholders’ equity 510,200 403,600 Total liabilities and stockholders’ equity $776,800 $715,100 ORIOLE COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020 Sales revenue $1,255,000 Cost of goods sold 715,500 Gross profit 539,500 Expenses Salaries and wages expense 251,700 Interest expense 74,300 Depreciation expense 26,100 Other expenses 8,100 Total expenses 360,200 Operating income 179,300 Income tax expense 43,200 Net income $136,100 The following is additional information concerning Oriole’s transactions during the year ended May 31, 2020. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. Plant assets costing $90,900 were purchased by paying $21,900 in cash and issuing 6,900 shares of stock. 4. The “other expenses” are related to prepaid items. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Oriole issued 2,100 shares of common stock at par value. 7. Cash dividends of $119,500 were declared and paid at the end of the fiscal year. (b) Your answer has been saved. See score details after the due date. Prepare a statement of cash flows for Oriole Company for the year ended May 31, 2020, using the direct method. (A reconciliation of net income to net cash provided is not required.) (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).) ORIOLE COMPANY Statement of Cash Flows (Partial)
Oriole Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Oriole as of May 31, 2020, are as follows. The company is preparing its statement of cash flows. ORIOLE COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31 2020 2019 Current assets Cash $28,300 $20,100 Accounts receivable 74,800 57,600 Inventory 219,200 249,500 Prepaid expenses 8,900 7,100 Total current assets 331,200 334,300 Plant assets Plant assets 596,000 505,100 Less: Accumulated depreciation—plant assets 150,400 124,300 Net plant assets 445,600 380,800 Total assets $776,800 $715,100 Current liabilities Accounts payable $122,200 $114,700 Salaries and wages payable 47,700 72,100 Interest payable 26,700 24,700 Total current liabilities 196,600 211,500 Long-term debt Bonds payable 70,000 100,000 Total liabilities 266,600 311,500 Stockholders’ equity Common stock, $10 par 370,000 280,000 Retained earnings 140,200 123,600 Total stockholders’ equity 510,200 403,600 Total liabilities and stockholders’ equity $776,800 $715,100 ORIOLE COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020 Sales revenue $1,255,000 Cost of goods sold 715,500 Gross profit 539,500 Expenses Salaries and wages expense 251,700 Interest expense 74,300 Depreciation expense 26,100 Other expenses 8,100 Total expenses 360,200 Operating income 179,300 Income tax expense 43,200 Net income $136,100 The following is additional information concerning Oriole’s transactions during the year ended May 31, 2020. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. Plant assets costing $90,900 were purchased by paying $21,900 in cash and issuing 6,900 shares of stock. 4. The “other expenses” are related to prepaid items. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Oriole issued 2,100 shares of common stock at par value. 7. Cash dividends of $119,500 were declared and paid at the end of the fiscal year. (b) Your answer has been saved. See score details after the due date. Prepare a statement of cash flows for Oriole Company for the year ended May 31, 2020, using the direct method. (A reconciliation of net income to net cash provided is not required.) (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).) ORIOLE COMPANY Statement of Cash Flows (Partial)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oriole Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Oriole as of May 31, 2020, are as follows. The company is preparing its statement of cash flows .
The following is additional information concerning Oriole’s transactions during the year ended May 31, 2020.
ORIOLE COMPANY
COMPARATIVE BALANCE SHEET AS OF MAY 31 |
||||
2020
|
2019
|
|||
Current assets | ||||
Cash |
$28,300
|
$20,100
|
||
|
74,800
|
57,600
|
||
Inventory |
219,200
|
249,500
|
||
Prepaid expenses |
8,900
|
7,100
|
||
Total current assets |
331,200
|
334,300
|
||
Plant assets | ||||
Plant assets |
596,000
|
505,100
|
||
Less: |
150,400
|
124,300
|
||
Net plant assets |
445,600
|
380,800
|
||
Total assets |
$776,800
|
$715,100
|
||
Current liabilities | ||||
Accounts payable |
$122,200
|
$114,700
|
||
Salaries and wages payable |
47,700
|
72,100
|
||
Interest payable |
26,700
|
24,700
|
||
Total current liabilities |
196,600
|
211,500
|
||
Long-term debt | ||||
Bonds payable |
70,000
|
100,000
|
||
Total liabilities |
266,600
|
311,500
|
||
Common stock, $10 par |
370,000
|
280,000
|
||
|
140,200
|
123,600
|
||
Total stockholders’ equity |
510,200
|
403,600
|
||
Total liabilities and stockholders’ equity |
$776,800
|
$715,100
|
ORIOLE COMPANY
INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020 |
||
Sales revenue |
$1,255,000
|
|
Cost of goods sold |
715,500
|
|
Gross profit |
539,500
|
|
Expenses | ||
Salaries and wages expense |
251,700
|
|
Interest expense |
74,300
|
|
Depreciation expense |
26,100
|
|
Other expenses |
8,100
|
|
Total expenses |
360,200
|
|
Operating income |
179,300
|
|
Income tax expense |
43,200
|
|
Net income |
$136,100
|
The following is additional information concerning Oriole’s transactions during the year ended May 31, 2020.
1. | All sales during the year were made on account. | |
2. | All merchandise was purchased on account, comprising the total accounts payable account. | |
3. | Plant assets costing $90,900 were purchased by paying $21,900 in cash and issuing 6,900 shares of stock. | |
4. | The “other expenses” are related to prepaid items. | |
5. | All income taxes incurred during the year were paid during the year. | |
6. | In order to supplement its cash, Oriole issued 2,100 shares of common stock at par value. | |
7. | Cash dividends of $119,500 were declared and paid at the end of the fiscal year. |
(b)
Your answer has been saved. See score details after the due date.
Prepare a statement of cash flows for Oriole Company for the year ended May 31, 2020, using the direct method. (A reconciliation of net income to net cash provided is not required.) (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).)
ORIOLE COMPANY
Statement of Cash Flows (Partial) |
||
|
||
|
$
|
|
Cash payments:
|
||
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