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 Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Accumulated depreciation $ $ 167 64 168 126 785 149 125 170 25 165 155 590 (229) (170) $1,230 1,060 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 50 $ 54 4 3 10 39 290 368 460 390 219 195 119 74 $1,230 $1,060 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $680 Expenses: Cost of goods sold Salaries expense Depreciation $320 90 59 expense Interest expense Loss on sale of land Income tax expense 11 97 580 Net income $100 Additional information from the accounting records: a. Land that originally cost $29,000 was sold for $26,000. b. The common stock of Microsoft Corporation was purchased for $39,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $195,000 cash. d. A $39,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $78,000 face value. f. Common stock ($70,000 par) was sold for $94,000. g. Net income was $100,000 and cash dividends of $55,000 were paid to shareholders.
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Accumulated depreciation $ $ 167 64 168 126 785 149 125 170 25 165 155 590 (229) (170) $1,230 1,060 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 50 $ 54 4 3 10 39 290 368 460 390 219 195 119 74 $1,230 $1,060 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $680 Expenses: Cost of goods sold Salaries expense Depreciation $320 90 59 expense Interest expense Loss on sale of land Income tax expense 11 97 580 Net income $100 Additional information from the accounting records: a. Land that originally cost $29,000 was sold for $26,000. b. The common stock of Microsoft Corporation was purchased for $39,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $195,000 cash. d. A $39,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $78,000 face value. f. Common stock ($70,000 par) was sold for $94,000. g. Net income was $100,000 and cash dividends of $55,000 were paid to shareholders.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Required:
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows
from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter
your answers in thousands (i.e., 10,000 should be entered as 10).)
WRIGHT COMPANY
Statement of Cash Flows
For the year ended December 31, 2021
($ in thousands)
Cash flows from operating activities:
Cash inflows:
Cash outflows:
Net cash flows from operating
activities.
Cash flows from investing activities:
Net cash flows from investing
activities
Cash flows from financing activities:
Net cash flows from financing
activities
Net increase (decrease) in cash
Cash balance, January 1
Cash balance, December 31
Transcribed Image Text: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
$ 125
Cash
Accounts receivable
Short-term investment
$
149
167
170
64
25
Inventory
Land
Buildings and equipment
Less: Accumulated
168
165
126
155
590
785
(229)
(170)
depreciation
$1,230
1,060
Liabilities
Accounts payable
Salaries payable
Interest payable
Income tax payable
Notes payable
Bonds payable
Shareholders' Equity
Common stock
Paid-in capital-excess
of par
Retained earnings
2$
50
$
54
4
6.
4
10
39
368
290
460
390
219
195
119
74
$1,230
$1,060
WRIGHT COMPANY
Income Statement
For Year Ended December 31, 2021
($ in thousands)
Revenues:
Sales revenue
$680
Expenses:
Cost of goods sold
Salaries expense
Depreciation
expense
Interest expense
Loss on sale of
land
Income tax expense
$320
59
11
3
97
580
Net income
$100
Additional information from the accounting records:
a. Land that originally cost $29,000 was sold for $26,000.
b. The common stock of Microsoft Corporation was purchased for $39,000 as a short-term investment not classified as
a cash equivalent.
c. New equipment was purchased for $195,000 cash.
d. A $39,000 note was paid at maturity on January 1.
e. On January 1, 2021, bonds were sold at their $78,000 face value.
f. Common stock ($70,000 par) was sold for $94,000.
g. Net income was $100,000 and cash dividends of $55,000 were paid to shareholders.
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