The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 79 $ 40 Accounts receivable 83 85 Short-term investment 33 12 Inventory 83 80 Land 58 70 Buildings and equipment 525 420 Less: Accumulated depreciation (127 ) (85 ) $ 734 622 Liabilities Accounts payable $ 29 $ 37 Salaries payable 4 7 Interest payable 4 2 Income tax payable 6 11 Notes payable 0 21 Bonds payable 162 120 Shareholders’ Equity Common stock 265 220 Paid-in capital—excess of par 145 110 Retained earnings 119 94 $ 734 $ 622 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $ 370 Expenses: Cost of goods sold $ 150 Salaries expense 49 Depreciation expense 42 Interest expense 11 Loss on sale of land 6 Income tax expense 52 310 Net income $ 60 Additional information from the accounting records: Land that originally cost $12,000 was sold for $6,000. The common stock of Microsoft Corporation was purchased for $21,000 as a short-term investment not classified as a cash equivalent. New equipment was purchased for $105,000 cash. A $21,000 note was paid at maturity on January 1. On January 1, 2021, bonds were sold at their $42,000 face value. Common stock ($45,000 par) was sold for $80,000. Net income was $60,000 and cash dividends of $35,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).)
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 79 $ 40 Accounts receivable 83 85 Short-term investment 33 12 Inventory 83 80 Land 58 70 Buildings and equipment 525 420 Less: Accumulated depreciation (127 ) (85 ) $ 734 622 Liabilities Accounts payable $ 29 $ 37 Salaries payable 4 7 Interest payable 4 2 Income tax payable 6 11 Notes payable 0 21 Bonds payable 162 120 Shareholders’ Equity Common stock 265 220 Paid-in capital—excess of par 145 110 Retained earnings 119 94 $ 734 $ 622 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $ 370 Expenses: Cost of goods sold $ 150 Salaries expense 49 Depreciation expense 42 Interest expense 11 Loss on sale of land 6 Income tax expense 52 310 Net income $ 60 Additional information from the accounting records: Land that originally cost $12,000 was sold for $6,000. The common stock of Microsoft Corporation was purchased for $21,000 as a short-term investment not classified as a cash equivalent. New equipment was purchased for $105,000 cash. A $21,000 note was paid at maturity on January 1. On January 1, 2021, bonds were sold at their $42,000 face value. Common stock ($45,000 par) was sold for $80,000. Net income was $60,000 and cash dividends of $35,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The comparative
WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) |
||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Cash | $ | 79 | $ | 40 | ||||
83 | 85 | |||||||
Short-term investment | 33 | 12 | ||||||
Inventory | 83 | 80 | ||||||
Land | 58 | 70 | ||||||
Buildings and equipment | 525 | 420 | ||||||
Less: |
(127 | ) | (85 | ) | ||||
$ | 734 | 622 | ||||||
Liabilities | ||||||||
Accounts payable | $ | 29 | $ | 37 | ||||
Salaries payable | 4 | 7 | ||||||
Interest payable | 4 | 2 | ||||||
Income tax payable | 6 | 11 | ||||||
Notes payable | 0 | 21 | ||||||
Bonds payable | 162 | 120 | ||||||
Shareholders’ Equity | ||||||||
Common stock | 265 | 220 | ||||||
Paid-in capital—excess of par | 145 | 110 | ||||||
119 | 94 | |||||||
$ | 734 | $ | 622 | |||||
WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) |
||||||
Revenues: | ||||||
Sales revenue | $ | 370 | ||||
Expenses: | ||||||
Cost of goods sold | $ | 150 | ||||
Salaries expense | 49 | |||||
Depreciation expense | 42 | |||||
Interest expense | 11 | |||||
Loss on sale of land | 6 | |||||
Income tax expense | 52 | 310 | ||||
Net income | $ | 60 | ||||
Additional information from the accounting records:
- Land that originally cost $12,000 was sold for $6,000.
- The common stock of Microsoft Corporation was purchased for $21,000 as a short-term investment not classified as a cash equivalent.
- New equipment was purchased for $105,000 cash.
- A $21,000 note was paid at maturity on January 1.
- On January 1, 2021, bonds were sold at their $42,000 face value.
- Common stock ($45,000 par) was sold for $80,000.
- Net income was $60,000 and cash dividends of $35,000 were paid to shareholders.
Required:
Prepare the statement of
|
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