The Weymire Corporation provides you with the following information for the year ended 123120: Sales revenue 450,000 Cost of goods sold 120,000 Gross margin 330,000 Depreciation expense Pension expense Other expense Interest expense 72,750 28,500 38,250 4,500 Gain on the sale of equipme (3,000) Income tax expense 97,500 238,500 Net Income 91.500 12/31/19 |12/31/20 54,000 Cash 24,000 Accounts Receivable 75,000 70,500 Inventory 124,500 126,000 Equipment 127,500 123,000 (9,000) 342.000 Accumulated Depreciation (10,500) 363.000 Total Accounts Payable 54,000 69,000 Income Taxes Payable 99,000 72,000 Interest Payable 3,000 1,500 Notes Payable, long term Accrued Pension Liability 45,000 6,000 3,000 Deferred Tax Liability 21,000 27,000 Common Stock, no par 105,000 120,000 Retained Earnings 9.000 70,500 Total 342.000 363.000 Additional information: Equipment costing $73,500 was sold. New equipment was purchased, and $15,000 of common stock was issued in partial payment for the new equipment. Required: Prepare a Statement of Cash Flows for Weymire Corporation for 2020 using the direct method. (You must prepare all supplementary schedules that would be required disclosures under the direct method.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Weymire Corporation provides you with the following information for the year ended 123120:
Sales revenue
450,000
Cost of goods sold
120,000
Gross margin
330,000
Depreciation expense
Pension expense
Other expense
Interest expense
72,750
28,500
38,250
4,500
Gain on the sale of equipme (3,000)
Income tax expense
97,500 238,500
Net Income
91.500
12/31/19
|12/31/20
54,000
Cash
24,000
Accounts Receivable
75,000
70,500
Inventory
124,500
126,000
Equipment
127,500
123,000
(9,000)
342.000
Accumulated Depreciation
(10,500)
363.000
Total
Accounts Payable
54,000
69,000
Income Taxes Payable
99,000
72,000
Interest Payable
3,000
1,500
Notes Payable, long term
Accrued Pension Liability
45,000
6,000
3,000
Deferred Tax Liability
21,000
27,000
Common Stock, no par
105,000
120,000
Retained Earnings
9.000
70,500
Total
342.000
363.000
Additional information:
Equipment costing $73,500 was sold. New equipment was purchased, and $15,000 of common stock was issued in partial payment for the new equipment.
Required: Prepare a Statement of Cash Flows for Weymire Corporation for 2020 using the direct method. (You must prepare all supplementary schedules
that would be required disclosures under the direct method.)
Transcribed Image Text:The Weymire Corporation provides you with the following information for the year ended 123120: Sales revenue 450,000 Cost of goods sold 120,000 Gross margin 330,000 Depreciation expense Pension expense Other expense Interest expense 72,750 28,500 38,250 4,500 Gain on the sale of equipme (3,000) Income tax expense 97,500 238,500 Net Income 91.500 12/31/19 |12/31/20 54,000 Cash 24,000 Accounts Receivable 75,000 70,500 Inventory 124,500 126,000 Equipment 127,500 123,000 (9,000) 342.000 Accumulated Depreciation (10,500) 363.000 Total Accounts Payable 54,000 69,000 Income Taxes Payable 99,000 72,000 Interest Payable 3,000 1,500 Notes Payable, long term Accrued Pension Liability 45,000 6,000 3,000 Deferred Tax Liability 21,000 27,000 Common Stock, no par 105,000 120,000 Retained Earnings 9.000 70,500 Total 342.000 363.000 Additional information: Equipment costing $73,500 was sold. New equipment was purchased, and $15,000 of common stock was issued in partial payment for the new equipment. Required: Prepare a Statement of Cash Flows for Weymire Corporation for 2020 using the direct method. (You must prepare all supplementary schedules that would be required disclosures under the direct method.)
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