The following are Grouper Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS 2020 2019 Increase (Decrease) Cash $818,200 $696,600 $121,600 Accounts receivable 1,132,100 1,177,800 (45,700 ) Inventory 1,841,000 1,713,900 127,100 Property, plant, and equipment 3,334,900 2,970,400 364,500 Accumulated depreciation (1,157,500 ) (1,030,100 ) (127,400 ) Investment in Myers Co. 308,600 273,500 35,100 Loan receivable 249,300 — 249,300 Total assets $6,526,600 $5,802,100 $724,500 Accounts payable $1,007,200 $949,700 $57,500 Income taxes payable 30,200 50,300 (20,100 ) Dividends payable 80,000 99,900 (19,900 ) Lease liabililty 424,100 — 424,100 Common stock, $1 par 500,000 500,000 — Paid-in capital in excess of par—common stock 1,491,400 1,491,400 — Retained earnings 2,993,700 2,710,800 282,900 Total liabilities and stockholders’ equity $6,526,600 $5,802,100 $724,500 Additional information: 1. On December 31, 2019, Grouper acquired 25% of Myers Co.’s common stock for $273,500. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,094,000. Myers reported income of $140,400 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year. 2. During 2020, Grouper loaned $324,900 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $75,600, plus interest at 10%, on December 31, 2020. 3. On January 2, 2020, Grouper sold equipment costing $59,600, with a carrying amount of $38,200, for $39,600 cash. 4. On December 31, 2020, Grouper entered into a capital lease for an office building. The present value of the annual rental payments is $424,100, which equals the fair value of the building. Grouper made the first rental payment of $60,600 when due on January 2, 2021. 5. Net income for 2020 was $362,900. 6. Grouper declared and paid the following cash dividends for 2020 and 2019.
The following are Grouper Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS 2020 2019 Increase (Decrease) Cash $818,200 $696,600 $121,600 Accounts receivable 1,132,100 1,177,800 (45,700 ) Inventory 1,841,000 1,713,900 127,100 Property, plant, and equipment 3,334,900 2,970,400 364,500 Accumulated depreciation (1,157,500 ) (1,030,100 ) (127,400 ) Investment in Myers Co. 308,600 273,500 35,100 Loan receivable 249,300 — 249,300 Total assets $6,526,600 $5,802,100 $724,500 Accounts payable $1,007,200 $949,700 $57,500 Income taxes payable 30,200 50,300 (20,100 ) Dividends payable 80,000 99,900 (19,900 ) Lease liabililty 424,100 — 424,100 Common stock, $1 par 500,000 500,000 — Paid-in capital in excess of par—common stock 1,491,400 1,491,400 — Retained earnings 2,993,700 2,710,800 282,900 Total liabilities and stockholders’ equity $6,526,600 $5,802,100 $724,500 Additional information: 1. On December 31, 2019, Grouper acquired 25% of Myers Co.’s common stock for $273,500. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,094,000. Myers reported income of $140,400 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year. 2. During 2020, Grouper loaned $324,900 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $75,600, plus interest at 10%, on December 31, 2020. 3. On January 2, 2020, Grouper sold equipment costing $59,600, with a carrying amount of $38,200, for $39,600 cash. 4. On December 31, 2020, Grouper entered into a capital lease for an office building. The present value of the annual rental payments is $424,100, which equals the fair value of the building. Grouper made the first rental payment of $60,600 when due on January 2, 2021. 5. Net income for 2020 was $362,900. 6. Grouper declared and paid the following cash dividends for 2020 and 2019.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 63BE: Asset Efficiency Ratios Rumsford Inc.s financial statements for 2019 indicate the following account...
Related questions
Question
The following are Grouper Corp.’s comparative
COMPARATIVE BALANCE SHEETS
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2020
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2019
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Increase
(Decrease) |
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Cash
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$818,200
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$696,600
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$121,600
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||||||
Accounts receivable
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1,132,100
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1,177,800
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(45,700
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)
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Inventory
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1,841,000
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1,713,900
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127,100
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Property, plant, and equipment
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3,334,900
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2,970,400
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364,500
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(1,157,500
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)
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(1,030,100
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)
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(127,400
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)
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Investment in Myers Co.
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308,600
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273,500
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35,100
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Loan receivable
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249,300
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—
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249,300
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Total assets
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$6,526,600
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$5,802,100
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$724,500
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Accounts payable
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$1,007,200
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$949,700
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$57,500
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Income taxes payable
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30,200
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50,300
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(20,100
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)
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Dividends payable
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80,000
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99,900
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(19,900
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)
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Lease liabililty
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424,100
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—
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424,100
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Common stock, $1 par
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500,000
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500,000
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—
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Paid-in capital in excess of par—common stock
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1,491,400
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1,491,400
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—
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2,993,700
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2,710,800
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282,900
|
||||||
Total liabilities and
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$6,526,600
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$5,802,100
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$724,500
|
Additional information:
1. | On December 31, 2019, Grouper acquired 25% of Myers Co.’s common stock for $273,500. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,094,000. Myers reported income of $140,400 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year. | |
2. | During 2020, Grouper loaned $324,900 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $75,600, plus interest at 10%, on December 31, 2020. | |
3. | On January 2, 2020, Grouper sold equipment costing $59,600, with a carrying amount of $38,200, for $39,600 cash. | |
4. | On December 31, 2020, Grouper entered into a capital lease for an office building. The present value of the annual rental payments is $424,100, which equals the fair value of the building. Grouper made the first rental payment of $60,600 when due on January 2, 2021. | |
5. | Net income for 2020 was $362,900. | |
6. | Grouper declared and paid the following cash dividends for 2020 and 2019. |
2020
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2019
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Declared
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December 15, 2020 | December 15, 2019 | ||
Paid
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February 28, 2021 | February 28, 2020 | ||
Amount
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$80,000 | $99,900 |
Prepare a statement of cash flows for Grouper Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
GROUPER CORP.
Statement of Cash Flows choose the accounting period |
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