25.Windsor Inc., a greeting card company, had the following statements prepared as of December 31, 2020.WINDSOR INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19Cash $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 STATEMENTFOR THE YEAR ENDING DECEMBER 31, 2020Sales revenue $339,800Cost of goods sold 176,500Gross profit 163,300Operating expenses 120,500Operating income 42,800Interest expense $11,300 Gain on sale of equipment 2,000 9,300Income before tax 33,500Income tax expense 6,700Net income $26,800Additional 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 Flowschoose 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 amountsselect 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 sectionsselect an item enter a dollar amountselect a closing name for this statement $enter a total of the two previous amounts

The cash flow statement is an essential part of the financial statements of the organization. It is…

Answered: WINDSOR INC. COMPARATIVE BALANCE SHEET…

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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25.

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

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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