Windsor Inc., a greeting card company, had the following statements prepared as of December 31, 2020. WINDSOR INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $7,100 Accounts receivable 62,400 51,000 Short-term debt investments (available-for-sale) 34,700 18,100 Inventory 40,400 60,300 Prepaid rent 4,900 4,000 Equipment 154,100 130,600 Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights 46,400 49,800 Total assets $314,100 $296,100 Accounts payable $46,500 $40,200 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100 4,100 Short-term loans payable 7,900 10,100 Long-term loans payable 59,600 68,400 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 58,000 37,300 Total liabilities & stockholders’ equity $314,100 $296,100 WINDSOR INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $339,800 Cost of goods sold 176,500 Gross profit 163,300 Operating expenses 120,500 Operating income 42,800 Interest expense $11,300 Gain on sale of equipment 2,000 9,300 Income before tax 33,500 Income tax expense 6,700 Net income $26,800 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) WINDSOR INC. Statement of Cash Flows choose the accounting period select an opening name for section one 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 subtotal of the four previous amounts select 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 an item enter a dollar amount 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 sections select an item enter a dollar amount select a closing name for this statement $enter a total of the two previous amounts
Windsor Inc., a greeting card company, had the following statements prepared as of December 31, 2020. WINDSOR INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $7,100 Accounts receivable 62,400 51,000 Short-term debt investments (available-for-sale) 34,700 18,100 Inventory 40,400 60,300 Prepaid rent 4,900 4,000 Equipment 154,100 130,600 Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights 46,400 49,800 Total assets $314,100 $296,100 Accounts payable $46,500 $40,200 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100 4,100 Short-term loans payable 7,900 10,100 Long-term loans payable 59,600 68,400 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 58,000 37,300 Total liabilities & stockholders’ equity $314,100 $296,100 WINDSOR INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $339,800 Cost of goods sold 176,500 Gross profit 163,300 Operating expenses 120,500 Operating income 42,800 Interest expense $11,300 Gain on sale of equipment 2,000 9,300 Income before tax 33,500 Income tax expense 6,700 Net income $26,800 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) WINDSOR INC. Statement of Cash Flows choose the accounting period select an opening name for section one 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 subtotal of the four previous amounts select 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 an item enter a dollar amount 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 sections select an item enter a dollar amount select a closing name for this statement $enter a total of the two previous amounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Windsor Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
Additional information:
Prepare a statement ofcash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
WINDSOR INC.
COMPARATIVE AS OF DECEMBER 31, 2020 AND 2019 |
||||||
---|---|---|---|---|---|---|
12/31/20
|
12/31/19
|
|||||
Cash
|
$6,100
|
$7,100
|
||||
|
62,400
|
51,000
|
||||
Short-term debt investments (available-for-sale)
|
34,700
|
18,100
|
||||
Inventory
|
40,400
|
60,300
|
||||
Prepaid rent
|
4,900
|
4,000
|
||||
Equipment
|
154,100
|
130,600
|
||||
|
(34,900
|
)
|
(24,800
|
)
|
||
Copyrights
|
46,400
|
49,800
|
||||
Total assets
|
$314,100
|
$296,100
|
||||
Accounts payable
|
$46,500
|
$40,200
|
||||
Income taxes payable
|
4,000
|
6,000
|
||||
Salaries and wages payable
|
8,100
|
4,100
|
||||
Short-term loans payable
|
7,900
|
10,100
|
||||
Long-term loans payable
|
59,600
|
68,400
|
||||
Common stock, $10 par
|
100,000
|
100,000
|
||||
Contributed capital, common stock
|
30,000
|
30,000
|
||||
|
58,000
|
37,300
|
||||
Total liabilities &
|
$314,100
|
$296,100
|
WINDSOR INC.
INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 |
||||
---|---|---|---|---|
Sales revenue
|
$339,800
|
|||
Cost of goods sold
|
176,500
|
|||
Gross profit
|
163,300
|
|||
Operating expenses
|
120,500
|
|||
Operating income
|
42,800
|
|||
Interest expense
|
$11,300
|
|||
Gain on sale of equipment
|
2,000
|
9,300
|
||
Income before tax
|
33,500
|
|||
Income tax expense
|
6,700
|
|||
Net income
|
$26,800
|
Additional information:
1. | Dividends in the amount of $6,100 were declared and paid during 2020. | |
2. | Depreciation expense and amortization expense are included in operating expenses. | |
3. | No unrealized gains or losses have occurred on the investments during the year. | |
4. | Equipment that had a cost of $20,100 and was 70% |
Prepare a statement of
WINDSOR INC.
Statement of Cash Flows choose the accounting period |
||
---|---|---|
select an opening name for section one
|
||
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 subtotal of the four previous amounts
|
||
select 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 an item
|
enter a dollar amount
|
|
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 sections
|
|
select an item
|
enter a dollar amount
|
|
select a closing name for this statement
|
$enter a total of the two previous amounts
|
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