You have been provided with Leonard Corporation's partial Statement of Financial Position and the Statement of Comprehensive Income for the year ended December 31, 2021. Leonard Corporation Partial Statement of Financial Position For the Year Ended December 31, 2021 2021 Accounts receivable -net Prepaid expenses Inventory Property, Plant & Equipment Accumulated Depreciation $440,000 45,000 825,000 Sales.... Cost of goods sold.. Gross Margin Selling, general and admin Depreciation expense Accounts payable Income taxes payable Deferred revenue Leonard Corporation Statement of Comprehensive Income For the Year Ended December 31, 2021 2020 2,475,000 2,105,000 482,000 31,000 810,000 (866,000) (823,000) Interest expense...... Gain on sale of PPE Net income before taxes Income Tax Expense Net income and comprehensive income... 184,000 197,000 38,000 35,000 42,000 47,000 $3,560,000 1,950,000 1,610,000 (595,000) (320,000) (115,300) 55,400 635,100 95,300 ..$539,800 Additional information: Equipment costing $665,000 was purchased in the year. The allowance for doubtful accounts at the beginning of the year was $35,000 and the balance at the end of the year was $41,000. Accounts written off amounted to $51,400 and recoveries were $9,400. a) Prepare the cash flow of operations using the direct method. b) Prepare the cash from investing section of the cash flow statement.
You have been provided with Leonard Corporation's partial Statement of Financial Position and the Statement of Comprehensive Income for the year ended December 31, 2021. Leonard Corporation Partial Statement of Financial Position For the Year Ended December 31, 2021 2021 Accounts receivable -net Prepaid expenses Inventory Property, Plant & Equipment Accumulated Depreciation $440,000 45,000 825,000 Sales.... Cost of goods sold.. Gross Margin Selling, general and admin Depreciation expense Accounts payable Income taxes payable Deferred revenue Leonard Corporation Statement of Comprehensive Income For the Year Ended December 31, 2021 2020 2,475,000 2,105,000 482,000 31,000 810,000 (866,000) (823,000) Interest expense...... Gain on sale of PPE Net income before taxes Income Tax Expense Net income and comprehensive income... 184,000 197,000 38,000 35,000 42,000 47,000 $3,560,000 1,950,000 1,610,000 (595,000) (320,000) (115,300) 55,400 635,100 95,300 ..$539,800 Additional information: Equipment costing $665,000 was purchased in the year. The allowance for doubtful accounts at the beginning of the year was $35,000 and the balance at the end of the year was $41,000. Accounts written off amounted to $51,400 and recoveries were $9,400. a) Prepare the cash flow of operations using the direct method. b) Prepare the cash from investing section of the cash flow statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You have been provided with Leonard Corporation's partial Statement of
Financial Position and the Statement of Comprehensive Income for the year
ended December 31, 2021.
Leonard Corporation
Partial Statement of Financial Position
For the Year Ended December 31, 2021
Accounts receivable -net
Prepaid expenses
Inventory
Property, Plant & Equipment
Accumulated Depreciation
Accounts payable
Income taxes payable
Deferred revenue
2021
Sales.......
Cost of goods sold..
Gross Margin.
Selling, general and admin
Depreciation expense
$440,000
482,000
45,000
31,000
825,000 810,000
2,475,000 2,105,000
2020
(866,000) (823,000)
184,000 197,000
38,000
35,000
47,000
42,000
Leonard Corporation
Statement of Comprehensive Income
For the Year Ended December 31, 2021
Interest expense.....
Gain on sale of PPE
Net income before taxes
Income Tax Expense
Net income and comprehensive income...
$3,560,000
1,950,000
1,610,000
(595,000)
(320,000)
(115,300)
55,400
635,100
95,300
.$539,800
Additional information:
Equipment costing $665,000 was purchased in the year.
The allowance for doubtful accounts at the beginning of the year was $35,000
and the balance at the end of the year was $41,000. Accounts written off
amounted to $51,400 and recoveries were $9,400.
a) Prepare the cash flow of operations using the direct method.
b) Prepare the cash from investing section of the cash flow statement.
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