The following are Splish 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 $812,400 $700,100 $112,300 Accounts receivable 1,135,500 1,158,500 (23,000)Inventory 1,844,800 1,713,900 130,900 Property, plant, and equipment 3,316,600 2,964,200 352,400 Accumulated depreciation (1,160,900) (1,040,300) (120,600)Investment in Myers Co. 309,500 274,000 35,500 Loan receivable 250,500 — 250,500 Total assets $6,508,400 $5,770,400 $738,000 Accounts payable $1,015,400 $955,000 $60,400 Income taxes payable 29,900 50,300 (20,400)Dividends payable 79,600 100,500 (20,900)Lease liabililty 412,000 — 412,000 Common stock, $1 par 500,000 500,000 — Paid-in capital in excess of par—common stock 1,511,500 1,511,500 — Retained earnings 2,960,000 2,653,100 306,900 Total liabilities and stockholders’ equity $6,508,400 $5,770,400 $738,000 Additional information:1. On December 31, 2019, Splish acquired 25% of Myers Co.’s common stock for $274,000. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $142,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.2. During 2020, Splish loaned $312,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $61,700, plus interest at 10%, on December 31, 2020.3. On January 2, 2020, Splish sold equipment costing $59,600, with a carrying amount of $37,700, for $40,200 cash.4. On December 31, 2020, Splish entered into a capital lease for an office building. The present value of the annual rental payments is $412,000, which equals the fair value of the building. Splish made the first rental payment of $59,700 when due on January 2, 2021.5. Net income for 2020 was $386,500.6. Splish declared and paid the following cash dividends for 2020 and 2019. 2020 2019Declared December 15, 2020 December 15, 2019Paid February 28, 2021 February 28, 2020Amount $79,600 $100,500Prepare a statement of cash flows for Splish 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).)SPLISH CORP.Statement of Cash Flowschoose the accounting period select an opening name for section one select an item $enter a dollar amountAdjustments to reconcile net income to select an opening subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a total amount of the adjustmentsselect a closing name for section one enter a total amount for section one select an opening name for section two select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select a closing name for section two enter a total amount for section two select an opening name for section three select an item enter a dollar amount select a closing name for section three enter a total amount for section three select an item enter a total amount for three sectionsselect an item enter a dollar amountselect a closing name for this statement $enter a total of the two previous amounts select an item select an item $enter a total amount

The statement of cash flow (CFS) represents the flow of cash that takes place in the business during…

Answered: The following are Splish Corp.’s…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are Splish 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	$812,400			$700,100		$112,300
Accounts receivable	1,135,500			1,158,500		(23,000	)
Inventory	1,844,800			1,713,900		130,900
Property, plant, and equipment	3,316,600			2,964,200		352,400
Accumulated depreciation	(1,160,900	)		(1,040,300	)	(120,600	)
Investment in Myers Co.	309,500			274,000		35,500
Loan receivable	250,500			—		250,500
Total assets	$6,508,400			$5,770,400		$738,000

Accounts payable	$1,015,400			$955,000		$60,400
Income taxes payable	29,900			50,300		(20,400	)
Dividends payable	79,600			100,500		(20,900	)
Lease liabililty	412,000			—		412,000
Common stock, $1 par	500,000			500,000		—
Paid-in capital in excess of par—common stock	1,511,500			1,511,500		—
Retained earnings	2,960,000			2,653,100		306,900
Total liabilities and stockholders’ equity	$6,508,400			$5,770,400		$738,000

Additional information:

1.		On December 31, 2019, Splish acquired 25% of Myers Co.’s common stock for $274,000. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $142,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2.		During 2020, Splish loaned $312,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $61,700, plus interest at 10%, on December 31, 2020.
3.		On January 2, 2020, Splish sold equipment costing $59,600, with a carrying amount of $37,700, for $40,200 cash.
4.		On December 31, 2020, Splish entered into a capital lease for an office building. The present value of the annual rental payments is $412,000, which equals the fair value of the building. Splish made the first rental payment of $59,700 when due on January 2, 2021.
5.		Net income for 2020 was $386,500.
6.		Splish declared and paid the following cash dividends for 2020 and 2019.

	2020	2019
Declared	December 15, 2020	December 15, 2019
Paid	February 28, 2021	February 28, 2020
Amount	$79,600	$100,500

Prepare a statement of cash flows for Splish 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).)

SPLISH CORP. Statement of Cash Flows choose the accounting period


select an opening name for section one

select an item

select an opening subsection name
		$enter a dollar amount
Adjustments to reconcile net income to

select an item

select an item
	$enter a dollar amount

select an item
	enter a dollar amount

select an item
	enter a dollar amount

select an item
	enter a dollar amount

select an item
	enter a dollar amount

select an item
	enter a dollar amount

select a closing name for section one
	enter a dollar amount
		enter a total amount of the adjustments

select an opening name for section two
		enter a total amount for section one

select an item

select an item
	enter a dollar amount

select an item
	enter a dollar amount

select a closing name for section two
	enter a dollar amount

select an opening name for section three
		enter a total amount for section two

select an item

select a closing name for section three
	enter a dollar amount

select an item
		enter a total amount for section three

select an item
		enter a total amount for three sections

select a closing name for this statement
		enter a dollar amount

select an item
		$enter a total of the two previous amounts

select an item

		$enter a total amount

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