The comparative balance sheets and income statements for Baird Company follow: Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Balance Sheets As of December 31 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 $34,640 (13,730) Sales revenue Cost of goods sold Gross margin Depreciation expense 20,910 (3,544) Year 2 $24,724 1,800 6,206 17,733 (9,935) 17,632 $58,160 $2,482 2,936 18,900 33,842 $58,160 Year 1 $2,823 1,080 5,818 42,083 (18,902) 11,322 $44, 224 $4,009 6,711 8,500 25,004 $44, 224
The comparative balance sheets and income statements for Baird Company follow: Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Balance Sheets As of December 31 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 $34,640 (13,730) Sales revenue Cost of goods sold Gross margin Depreciation expense 20,910 (3,544) Year 2 $24,724 1,800 6,206 17,733 (9,935) 17,632 $58,160 $2,482 2,936 18,900 33,842 $58,160 Year 1 $2,823 1,080 5,818 42,083 (18,902) 11,322 $44, 224 $4,009 6,711 8,500 25,004 $44, 224
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
Related questions
Question
![The comparative balance sheets and income statements for Baird Company follow:
Assets
Cash
Accounts receivable
Inventory
Equipment
Accumulated depreciation-equipment
Land
Total assets
Balance Sheets
As of December 31
Liabilities and equity
Accounts payable (inventory)
Long-term debt
Common stock
Retained earnings
Total liabilities and equity
Income Statement
For the Year Ended December 31, Year 2
$34,640
(13,730)
Sales revenue
Cost of goods sold
Gross margin
Depreciation expense
Operating income
20,910
(3,544)
17 366
Year 2
$24,724
1,800
6, 206
17,733
(9,935)
17,632
$58,160
$2,482
2,936
18,900
33,842
$58,160
Year 1
$2,823
1,080
5,818
42,083
(18,902)
11,322
$44, 224
$4,009
6,711
8,500
25,004
$44,224](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faeb81122-6fbf-4c63-aaf5-71689ff4fea7%2F1f7aab0d-9fb4-40fc-8f5f-92c75567d30a%2Fuba9l8_processed.png&w=3840&q=75)
Transcribed Image Text:The comparative balance sheets and income statements for Baird Company follow:
Assets
Cash
Accounts receivable
Inventory
Equipment
Accumulated depreciation-equipment
Land
Total assets
Balance Sheets
As of December 31
Liabilities and equity
Accounts payable (inventory)
Long-term debt
Common stock
Retained earnings
Total liabilities and equity
Income Statement
For the Year Ended December 31, Year 2
$34,640
(13,730)
Sales revenue
Cost of goods sold
Gross margin
Depreciation expense
Operating income
20,910
(3,544)
17 366
Year 2
$24,724
1,800
6, 206
17,733
(9,935)
17,632
$58,160
$2,482
2,936
18,900
33,842
$58,160
Year 1
$2,823
1,080
5,818
42,083
(18,902)
11,322
$44, 224
$4,009
6,711
8,500
25,004
$44,224
![Income Statement
For the Year Ended December 31, Year 2
$34,640
(13,730)
20,910
(3,544)
17,366
Sales revenue
Cost of goods sold
Gross margin
Depreciation expense
Operating income
Gain on sale of equipment
Loss on disposal of land
Net income
Additional Data
400
(90)
$17,676
1. During Year 2, the company sold equipment for $18,789; it had originally cost $30,900. Accumulated depreciation on this
equipment was $12,511 at the time of the sale. Also, the company purchased equipment for $6,550 cash.
2. The company sold land that had cost $4,090. This land was sold for $4,000, resulting in the recognition of a $90 loss. Also,
common stock was issued in exchange for title to land that was valued at $10,400 at the time of exchange.
3. Paid dividends of $8,838.
Required
Prepare a statement of cash flows using the indirect method.
Note: Amounts to be deducted and cash outflows should be indicated by a minus sign.
BAIRD COMPANY](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faeb81122-6fbf-4c63-aaf5-71689ff4fea7%2F1f7aab0d-9fb4-40fc-8f5f-92c75567d30a%2F6eqby0g_processed.png&w=3840&q=75)
Transcribed Image Text:Income Statement
For the Year Ended December 31, Year 2
$34,640
(13,730)
20,910
(3,544)
17,366
Sales revenue
Cost of goods sold
Gross margin
Depreciation expense
Operating income
Gain on sale of equipment
Loss on disposal of land
Net income
Additional Data
400
(90)
$17,676
1. During Year 2, the company sold equipment for $18,789; it had originally cost $30,900. Accumulated depreciation on this
equipment was $12,511 at the time of the sale. Also, the company purchased equipment for $6,550 cash.
2. The company sold land that had cost $4,090. This land was sold for $4,000, resulting in the recognition of a $90 loss. Also,
common stock was issued in exchange for title to land that was valued at $10,400 at the time of exchange.
3. Paid dividends of $8,838.
Required
Prepare a statement of cash flows using the indirect method.
Note: Amounts to be deducted and cash outflows should be indicated by a minus sign.
BAIRD COMPANY
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