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Concept explainers
Statement of
The Comparative
Dec. 31, 20Y9 | Dec. 31, 20Y8 | |
Assets | ||
Cash.................................. | $ 70,720 | $ 47,940 |
207,230 | 188,190 | |
Inventories............................................... | 298,520 | 289,850 |
Investments.............................................. | 0 | 102,000 |
Land..................................................... | 295,800 | 0 |
Equipment................................................ | 438,600 | 358,020 |
Accumulated |
(99,110) | (184,320) |
Total assets............................................ | $1,211,760 | $901,680 |
Liabilities and |
||
Accounts payable......................................... | $ 205,700 | $194,140 |
Accrued expenses payable................................. | 30,600 | 26,860 |
Dividends payable....................................... | 25,500 | 20,400 |
Common stock, $1 par..................................... | 202,000 | 102,000 |
Paid-in capital: Excess of issue price over par—common stock...... | 354,000 | 204,000 |
393,960 | 354,280 | |
Total liabilities and stockholders' equity.................. | $1,211,760 | $901,680 |
The income statement for the year ended December 31. 20Y9, is as follows:
Sales........................................... | $2,023,898 | |
Cost of merchandise sold........................ | 1,245,476 | |
Gross profit..................................... | $ 778,422 | |
Operating expenses: | ||
Depreciation expense........................ | $ 14,790 | |
Other operating expenses.................... | 517,299 | |
Total operating expenses.................. | 532,089 | |
Operating income............................... | $ 246,333 | |
Other expenses: | ||
Loss on sale of investments................... | (10,200) | |
Income before income tax....................... | $ 236,133 | |
Income tax expense............................. | 94,453 | |
Net income..................................... | $ 141,680 |
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $91,800 cash.
d. The common stock was issued for cash.
e. There was a $102,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
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Chapter 16 Solutions
Accounting
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