You are given the following comparative balance sheet for Zallaq Inc.: Assets Dec.31, 2020 Dec.31, 2019 $39,000 Cash $234,000 Accounts Receivable 48,000 54,000 42,000 Inventory Prepaid expense Long-term investments Equipment Accumulated depreciation-equipment 81,000 21,000 36,000 54,000 96,000 111,000 _(42,000) $426.000 (30,000) $318,000 Total Assets Liabilities & Stockholders' Equity $ 21,000 Accounts payable Bonds payable (long-term) Common Stock Retained Earnings $ 5 1,000 111,000 141,000 69,000 87,000 $318,000 120,000 144,000 $ 426,000 Total Liabilities & Stockholders' Equity Additional information: 1. Net income for the year ending December 31, 2020 was $87,000 2. Received cash for the sale of long-term investments that had a cost of $54,000, yielding a $6,000 loss. 3. Depreciation expense for 2020 was $12,000. 4. All sales and purchases of inventory are on account (or credit). 5. The only changes affecting retained earnings are net income and cash dividends paid which is $30,000. 6. Purchased new equipment for cash, no disposal was made during the period. Required: Prepare the FIRST (Operating) and the SECOND (Investing) sections of the statement of cash flows for the year ended December 31, 2020. (PLEASE PROVID EACH AMOUNT/ITEM IN A SEPARATE LINE)
You are given the following comparative balance sheet for Zallaq Inc.: Assets Dec.31, 2020 Dec.31, 2019 $39,000 Cash $234,000 Accounts Receivable 48,000 54,000 42,000 Inventory Prepaid expense Long-term investments Equipment Accumulated depreciation-equipment 81,000 21,000 36,000 54,000 96,000 111,000 _(42,000) $426.000 (30,000) $318,000 Total Assets Liabilities & Stockholders' Equity $ 21,000 Accounts payable Bonds payable (long-term) Common Stock Retained Earnings $ 5 1,000 111,000 141,000 69,000 87,000 $318,000 120,000 144,000 $ 426,000 Total Liabilities & Stockholders' Equity Additional information: 1. Net income for the year ending December 31, 2020 was $87,000 2. Received cash for the sale of long-term investments that had a cost of $54,000, yielding a $6,000 loss. 3. Depreciation expense for 2020 was $12,000. 4. All sales and purchases of inventory are on account (or credit). 5. The only changes affecting retained earnings are net income and cash dividends paid which is $30,000. 6. Purchased new equipment for cash, no disposal was made during the period. Required: Prepare the FIRST (Operating) and the SECOND (Investing) sections of the statement of cash flows for the year ended December 31, 2020. (PLEASE PROVID EACH AMOUNT/ITEM IN A SEPARATE LINE)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You are given the following comparative balance sheet for Zallaq Inc.:
Assets
Dec.31, 2020
$234,000
Dec.31, 2019
Cash
$39,000
42,000
Accounts Receivable
48,000
54,000
Inventory
Prepaid expense
Long-term investments
Equipment
Accumulated depreciation-equipment _(42,000)
81,000
21,000
36,000
54,000
96,000
111,000
(30,000)
$318,000
Total Assets
$426,000
Liabilities & Stockholders' Equity
Accounts payable
Bonds payable (long-term)
Common Stock
$ 51,000
$ 21,000
141,000
69,000
87,000
$318,000
111,000
120,000
Retained Earnings
144,000
$ 426,000
Total Liabilities & Stockholders'
Equity
Additional in formation:
1. Net income for the year ending December 31, 2020 was $87,000
2. Received cash for the sale of long-term investments that had a cost of $54,000, yielding a $6,000 loss.
3. Depreciation expense for 2020 was $12,000.
4. All sales and purchases of inventory are on account (or credit).
5. The only changes affecting retained earnings are net income and cash dividends paid which is $30,000.
6. Purchased new equipment for cash, no disposal was made during the period.
Required:
Prepare the FIRST (Operating) and the SECOND (Investing) sections of the statement of cash flows for the year ended December 31, 2020.
(PLEASE PROVID EACH AMOUNT/ITEM IN A SEPARATE LINE)
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