Preparing a Cash Flow WorksheetTaser Corporation’s recent comparative balance sheet and income statement follow. Balance Sheets, December 3120192020Assets Cash and cash equivalents$93,600$153,120Accounts receivable (net)163,200163,200Merchandise inventory374,400408,000Investments, long-term 48,000Plant assets808,800866,400Accumulated depreciation(211,200)(163,200)Total assets$1,228,800$1,475,520Liabilities and Stockholders’ Equity Accounts payable$100,800$91,200Salaries payable7,2002,400Income taxes payable9,60016,800Bonds payable480,000480,000Premium on bonds payable19,20017,760Common stock, no-par576,000746,400Retained earnings36,000120,960Total liabilities andstockholders’ equity$1,228,800$1,475,520Income Statement,For Year Ended December 312020Sales revenue$576,000Cost 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 assets14,400Net 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 WorksheetCash Flow Reconciliationa. Prepare a cash flow worksheet.Comparative Balance Sheets2019Dr.Cr.2020Cash and cash equivalents$93,600Answer Answer Answer Accounts receivable163,200Answer Answer Answer Merchandise inventory374,400Answer Answer Answer Investments, long-term0Answer Answer Answer Plant assets808,800Answer Answer Answer Accumulated depreciation(211,200)Answer Answer Answer Total assets$1,228,800 Answer Accounts payable$100,800Answer Answer Answer Salaries payable7,200Answer Answer Answer Income taxes payable9,600Answer Answer Answer Bonds payable480,000Answer Answer Answer Premium on bonds payable19,200Answer Answer Answer Common stock, no par576,000Answer Answer Answer Retained earnings36,000Answer 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 Answer Increase in inventory Answer Answer Decrease in accounts payable Answer Answer Decrease in salaries payable Answer Answer Increase in income taxes payable Answer Answer Cash Flows from Investing Activities Purchase of long-term investments Answer Answer Answer Answer Answer Cash Flows from Financing Activities Answer Answer Answer Issuance of stock Answer Answer Net cash and cash equivalents increase Answer Answer Total Answer Answer

The cash flow statement represents the cash inflow and cash outflow due to the operating, financing, and investing activities.

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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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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	Answer
Increase in inventory		Answer	Answer
Decrease in accounts payable		Answer	Answer
Decrease in salaries payable		Answer	Answer
Increase in income taxes payable		Answer	Answer
Cash Flows from Investing Activities
Purchase of long-term investments		Answer	Answer
Answer		Answer	Answer
Cash Flows from Financing Activities
Answer		Answer	Answer
Issuance of stock		Answer	Answer
Net cash and cash equivalents increase		Answer	Answer
Total		Answer	Answer

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