Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2020. AYAYAI INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,000 $7,100 Accounts receivable 62,000 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 40,400 59,600 Prepaid rent 5,100 3,900 Equipment 153,300 131,200 Accumulated depreciation—equipment (35,300 ) (25,100 ) Copyrights 46,000 50,000 Total assets $312,800 $295,300 Accounts payable $46,200 $39,700 Income taxes payable 3,900 6,100 Salaries and wages payable 7,900 4,000 Short-term loans payable 8,000 10,100 Long-term loans payable 59,900 68,300 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 56,900 37,100 Total liabilities & stockholders’ equity $312,800 $295,300 AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $334,625 Cost of goods sold 174,300 Gross profit 160,325 Operating expenses 118,900 Operating income 41,425 Interest expense $11,300 Gain on sale of equipment 2,000 9,300 Income before tax 32,125 Income tax expense 6,425 Net income $25,700 Additional information: 1. Dividends in the amount of $5,900 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 $19,800 and was 70% depreciated was sold during 2020
Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2020. AYAYAI INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,000 $7,100 Accounts receivable 62,000 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 40,400 59,600 Prepaid rent 5,100 3,900 Equipment 153,300 131,200 Accumulated depreciation—equipment (35,300 ) (25,100 ) Copyrights 46,000 50,000 Total assets $312,800 $295,300 Accounts payable $46,200 $39,700 Income taxes payable 3,900 6,100 Salaries and wages payable 7,900 4,000 Short-term loans payable 8,000 10,100 Long-term loans payable 59,900 68,300 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 56,900 37,100 Total liabilities & stockholders’ equity $312,800 $295,300 AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $334,625 Cost of goods sold 174,300 Gross profit 160,325 Operating expenses 118,900 Operating income 41,425 Interest expense $11,300 Gain on sale of equipment 2,000 9,300 Income before tax 32,125 Income tax expense 6,425 Net income $25,700 Additional information: 1. Dividends in the amount of $5,900 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 $19,800 and was 70% depreciated was sold during 2020
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...
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Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
AYAYAI INC.
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
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12/31/20
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12/31/19
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Cash
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$6,000
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$7,100
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Accounts receivable
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62,000
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50,700
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Short-term debt investments (available-for-sale)
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35,300
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17,900
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Inventory
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40,400
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59,600
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Prepaid rent
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5,100
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3,900
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Equipment
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153,300
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131,200
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(35,300
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)
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(25,100
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)
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Copyrights
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46,000
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50,000
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Total assets
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$312,800
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$295,300
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Accounts payable
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$46,200
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$39,700
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Income taxes payable
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3,900
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6,100
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Salaries and wages payable
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7,900
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4,000
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Short-term loans payable
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8,000
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10,100
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Long-term loans payable
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59,900
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68,300
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Common stock, $10 par
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100,000
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100,000
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Contributed capital, common stock
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30,000
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30,000
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Retained earnings
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56,900
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37,100
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Total liabilities &
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$312,800
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$295,300
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AYAYAI INC.
INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 |
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Sales revenue
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$334,625
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Cost of goods sold
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174,300
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Gross profit
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160,325
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Operating expenses
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118,900
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Operating income
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41,425
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Interest expense
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$11,300
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Gain on sale of equipment
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2,000
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9,300
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Income before tax
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32,125
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Income tax expense
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6,425
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Net income
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$25,700
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Additional information:
1. | Dividends in the amount of $5,900 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 $19,800 and was 70% depreciated was sold during 2020. |
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
AYAYAI INC.
Statement of Cash Flows choose the accounting period |
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enter a dollar amount
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enter a total amount for section two
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select an opening name for section three
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enter a dollar amount
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enter a dollar amount
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enter a total amount for three sections
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enter a dollar amount
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select a closing name for this statement
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$enter a total of the two previous amounts
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