Preparing a Cash Flow Worksheet Taser Corporation’s recent comparative balance sheet and income statement follow.   Balance Sheets, December 31 2019 2020 Assets     Cash and cash equivalents $93,600 $153,120 Accounts receivable (net) 163,200 163,200 Merchandise inventory 374,400 408,000 Investments, long-term   48,000 Plant assets 808,800 866,400 Accumulated depreciation (211,200) (163,200) Total assets $1,228,800 $1,475,520 Liabilities and Stockholders’ Equity     Accounts payable $100,800 $91,200 Salaries payable 7,200 2,400 Income taxes payable 9,600 16,800 Bonds payable 480,000 480,000 Premium on bonds payable 19,200 17,760 Common stock, no-par 576,000 746,400 Retained earnings 36,000 120,960 Total liabilities andstockholders’ equity $1,228,800 $1,475,520

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Preparing a Cash Flow Worksheet

Taser Corporation’s recent comparative balance sheet and income statement follow.

 

Balance Sheets, December 31 2019 2020
Assets    
Cash and cash equivalents $93,600 $153,120
Accounts receivable (net) 163,200 163,200
Merchandise inventory 374,400 408,000
Investments, long-term   48,000
Plant assets 808,800 866,400
Accumulated depreciation (211,200) (163,200)
Total assets $1,228,800 $1,475,520
Liabilities and Stockholders’ Equity    
Accounts payable $100,800 $91,200
Salaries payable 7,200 2,400
Income taxes payable 9,600 16,800
Bonds payable 480,000 480,000
Premium on bonds payable 19,200 17,760
Common stock, no-par 576,000 746,400
Retained earnings 36,000 120,960
Total liabilities andstockholders’ equity $1,228,800 $1,475,520
Income Statement,
For Year Ended December 31
2020
Sales revenue $576,000
Cost of goods sold (230,400)
Depreciation expense (28,800)
Salaries expense (105,600)
Income tax expense (48,000)
Interest expense (33,600)
Other expenses (11,040)
Gain on sale of plant assets 14,400
Net income $132,960

 

Additional information 

1. Purchased a plant asset, $144,000; issued capital stock in full payment. 

2. Purchased a long-term investment in equity securities accounted for cash, $48,000. 

3. Declared and paid a cash dividend, $48,000. 

4. Sold plant asset for $24,000 cash (cost, $86,400; accumulated depreciation, $76,800). 

5. Sold capital stock, 2,400 shares at $11 per share cash. 

Required 

 

 

  • Cash Flow Worksheet
  • Cash Flow Reconciliation

a. Prepare a cash flow worksheet.

Comparative Balance Sheets 2019 Dr. Cr. 2020
Cash and cash equivalents $93,600 Answer
 
Answer
 
Answer
 
Accounts receivable 163,200 Answer
 
Answer
 
Answer
 
Merchandise inventory 374,400 Answer
 
Answer
 
Answer
 
Investments, long-term 0 Answer
 
Answer
 
Answer
 
Plant assets 808,800 Answer
 
Answer
 
Answer
 
Accumulated depreciation (211,200) Answer
 
Answer
 
Answer
 
Total assets $1,228,800     Answer
 
Accounts payable $100,800 Answer
 
Answer
 
Answer
 
Salaries payable 7,200 Answer
 
Answer
 
Answer
 
Income taxes payable 9,600 Answer
 
Answer
 
Answer
 
Bonds payable 480,000 Answer
 
Answer
 
Answer
 
Premium on bonds payable 19,200 Answer
 
Answer
 
Answer
 
Common stock, no par 576,000 Answer
 
Answer
 
Answer
 
Retained earnings 36,000 Answer
 
Answer
 
Answer
 
Total liabilities and stockholders' equity $1,228,800     Answer
 
Cash Flows from Operating Activities        
Net income   Answer
 
Answer
 
 
Depreciation expense   Answer
 
Answer
 
 
Answer   Answer
 
Answer
 
 
Gain on sale of fixed assets   Answer
 
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Increase in inventory   Answer
 
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Decrease in accounts payable   Answer
 
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Decrease in salaries payable   Answer
 
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Increase in income taxes payable   Answer
 
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Cash Flows from Investing Activities        
Purchase of long-term investments   Answer
 
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Answer   Answer
 
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Cash Flows from Financing Activities        
Answer   Answer
 
Answer
 
 
Issuance of stock   Answer
 
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Net cash and cash equivalents increase   Answer
 
Answer
 
 
Total   Answer
 
Answer
 
 

 

 
 
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