Condensed financial data of Swifty Company for 2020 and 2019 are presented below.SWIFTY COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 201920202019Cash$1,800$1,130Receivables1,7501,320Inventory1,6301,890Plant assets1,9101,720Accumulated depreciation(1,190 )(1,170 )Long-terminvestments (held-to-maturity)1,2801,410$7,180$6,300Accounts payable$1,230$910Accrued liabilities190240Bonds payable1,4001,540Common stock1,9301,680Retained earnings2,4301,930$7.180$6,300SWIFTY COMPANYINCOMESTATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020Sales revenue$6,890Cost of goods sold4,730Gross marginSelling and administrative expenses2,160940Income from operations1,220Other revenues and gainsGain on sale of investments90Income before tax1,310Income tax expense550Net income760Cash dividends260Income retained in business$500Additional information:During the year. $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statsment of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash fiowwith either a - sign eg-15,000 or in parenthesis eg. (15,000USWIFTY COMPANYStatement of Cash Flows(Direct Method)> >> >>>>

Cash Flow Statement is prepared to analyze the Inflow and Outflow of Cash in the organisation.

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash fi with either a- sign eg-15,000 or in parenthesis eg. (15,000J SWIFTY COMPANY Statement of Cash Flows (Direct Method) > > > > >

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash fi with either a- sign eg-15,000 or in parenthesis eg. (15,000J SWIFTY COMPANY Statement of Cash Flows (Direct Method) > > > > >

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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Question

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Condensed financial data of Swifty Company for 2020 and 2019 are presented below.
SWIFTY COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
2020
2019
Cash
$1,800
$1,130
Receivables
1,750
1,320
Inventory
1,630
1,890
Plant assets
1,910
1,720
Accumulated depreciation
(1,190 )
(1,170 )
Long-terminvestments (held-to-maturity)
1,280
1,410
$7,180
$6,300
Accounts payable
$1,230
$910
Accrued liabilities
190
240
Bonds payable
1,400
1,540
Common stock
1,930
1,680
Retained earnings
2,430
1,930
$7.180
$6,300
SWIFTY COMPANY
INCOMESTATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue
$6,890
Cost of goods sold
4,730
Gross margin
Selling and administrative expenses
2,160
940
Income from operations
1,220
Other revenues and gains
Gain on sale of investments
90
Income before tax
1,310
Income tax expense
550
Net income
760
Cash dividends
260
Income retained in business
$500
Additional information:
During the year. $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statsment of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash fiow
with either a - sign eg-15,000 or in parenthesis eg. (15,000U
SWIFTY COMPANY
Statement of Cash Flows
(Direct Method)
> >
> >
>
>
>

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