The comparative balance sheets for Swifty Corporation show the fllowing information. December 31 2020 $3,500 2019 $12,900 Cash 12,400 12,100 Accounts receivable 10,000 Inventory 9,000 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,800 Equipment 44,800 19,900 5,000 $107,800 Patents 6,300 $90,900 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building Accounts payable Dividends payable -0- 6,000 5,000 3,000 -0- 4,900 Notes payable, short-term (nontrade) 3,000 4,100 Long-term notes payable Common stock 31,000 25,000 43,000 33,000 Retained earnings 20,700 _$107,800 5,900 $90,900 Additional data related to 2020 are as follows. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $4,900. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). 1. 2. 3. / 1,2 4. Debt investments (available-for-sale) were sold at $1,800 above their cost. The company has made similar sales and investments in the past. 5. 6. Cash was paid for the acquisition of equipment. Along-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash. 7. 8.
The comparative balance sheets for Swifty Corporation show the fllowing information. December 31 2020 $3,500 2019 $12,900 Cash 12,400 12,100 Accounts receivable 10,000 Inventory 9,000 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,800 Equipment 44,800 19,900 5,000 $107,800 Patents 6,300 $90,900 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building Accounts payable Dividends payable -0- 6,000 5,000 3,000 -0- 4,900 Notes payable, short-term (nontrade) 3,000 4,100 Long-term notes payable Common stock 31,000 25,000 43,000 33,000 Retained earnings 20,700 _$107,800 5,900 $90,900 Additional data related to 2020 are as follows. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $4,900. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). 1. 2. 3. / 1,2 4. Debt investments (available-for-sale) were sold at $1,800 above their cost. The company has made similar sales and investments in the past. 5. 6. Cash was paid for the acquisition of equipment. Along-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash. 7. 8.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Transcribed Image Text:The comparative balance sheets for Swifty Corporation show the following information.
December 31
2020
$33,500
2019
$12,900
Cash
Accounts receivable
12,400
10,000
Inventory
12,100
9,000
Available-for-sale debt investments
-0-
3,000
Buildings
-0-
29,800
Equipment
44,800
19,900
Patents
5,000
6,300
$90,900
$107,800
Allowance for doubtful accounts
$3,100
$4,500
Accumulated depreciation-equipment
2,000
4,500
Accumulated depreciation-building
-0-
6,000
Accounts payable
5,000
3,000
Dividends payable
Notes payable, short-term (nontrade)
-0-
4,900
3,000
4,100
Long-term notes payable
31,000
25,000
Common stock
43,000
33,000
Retained earnings
20,700
$107,800
5,900
$90,900
Additional data related to 2020 are as follows.
Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.
$10,000 of the long-term note payable was paid by issuing common stock.
Cash dividends paid were $4,900.
On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900
(net of $2,000 taxes).
Debt investments (available-for-sale) were sold at $1,800 above their cost. The company has made similar sales and
investments in the past.
1.
2.
3.
4.
5.
Cash was paid for the acquisition of equipment.
A long-term note for $16,000 was issued for the acquisition of equipment.
Interest of $2,000 and income taxes of $6,500 were paid in cash.
6.
7.
8.
Transcribed Image Text:Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or
in parenthesis eg. (15,000),)
SWIFTY CORPORATION
Statement of Cash Flows
Adjustments to reconcile net income to
Supplemental disclosures of cash flow information:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education