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Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a-sign eg-15.000 or in parenthesis eg. (15,0001) KINGBIRD INC.

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a-sign eg-15.000 or in parenthesis eg. (15,0001) KINGBIRD INC.

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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Kingbird Inc., a greeting card company, had the following statements prepared as of December 31, 2020. Cash KINGBIRD INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity 12/31/20 $6,000 62,000 35,300 40,400 5,100 153,300 (35,300 ) 46,000 $312,800 $46,200 3,900 7,900 8,000 59,900 100,000 30,000 56,900 $312,800 12/31/19 $7,100 50,700 17,900 59,600 3,900 131,200 (25,100) 50,000 $295,300 $39,700 6,100 4,000 10,100 68,300 100,000 30,000 37,100 $295,300
Transcribed Image Text:Kingbird Inc., a greeting card company, had the following statements prepared as of December 31, 2020. Cash KINGBIRD INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity 12/31/20 $6,000 62,000 35,300 40,400 5,100 153,300 (35,300 ) 46,000 $312,800 $46,200 3,900 7,900 8,000 59,900 100,000 30,000 56,900 $312,800 12/31/19 $7,100 50,700 17,900 59,600 3,900 131,200 (25,100) 50,000 $295,300 $39,700 6,100 4,000 10,100 68,300 100,000 30,000 37,100 $295,300
KINGBIRD INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $334,625 Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income Additional information: 1. 2. 3. 4. $11,300 2,000 174,300 160,325 118,900 41,425 9,300 32,125 6,425 $25,700 Dividends in the amount of $5,900 were declared and paid during 2020. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (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. (15,0001) KINGBIRD INC. Statement of Cash Flows
Transcribed Image Text:KINGBIRD INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $334,625 Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income Additional information: 1. 2. 3. 4. $11,300 2,000 174,300 160,325 118,900 41,425 9,300 32,125 6,425 $25,700 Dividends in the amount of $5,900 were declared and paid during 2020. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (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. (15,0001) KINGBIRD INC. Statement of Cash Flows
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