BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,470,000 Cost of goods sold Beginning inventory $2,050,000 Purchases 4,300,000 Goods available for sale 6,350,000 Ending inventory 1,650,000 Cost of goods sold 4,700,000 Gross profit 1,770,000 Operating expenses Selling expenses 430,000 Administrative expenses 700,000 1,130,000 Net income $640,000 Additional information: 1. Accounts receivable decreased $290,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $130,000 during the year. 5. Administrative expenses include depreciation expense of $70,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Bonita Company, 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).)
BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,470,000 Cost of goods sold Beginning inventory $2,050,000 Purchases 4,300,000 Goods available for sale 6,350,000 Ending inventory 1,650,000 Cost of goods sold 4,700,000 Gross profit 1,770,000 Operating expenses Selling expenses 430,000 Administrative expenses 700,000 1,130,000 Net income $640,000 Additional information: 1. Accounts receivable decreased $290,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $130,000 during the year. 5. Administrative expenses include depreciation expense of $70,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Bonita Company, 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).)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.24MCE
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Your answer is partially correct.
The income statement of Bonita Company is shown below.
Additional information:
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Bonita Company, 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).)
BONITA COMPANY
INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 |
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Sales revenue
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$6,470,000
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Cost of goods sold
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Beginning inventory
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$2,050,000
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Purchases
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4,300,000
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Goods available for sale
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6,350,000
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Ending inventory
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1,650,000
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Cost of goods sold
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4,700,000
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Gross profit
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1,770,000
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Operating expenses
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||||
Selling expenses
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430,000
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Administrative expenses
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700,000
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1,130,000
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Net income
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$640,000
|
Additional information:
1. | Accounts receivable decreased $290,000 during the year. | |
2. | Prepaid expenses increased $170,000 during the year. | |
3. | Accounts payable to suppliers of merchandise decreased $280,000 during the year. | |
4. | Accrued expenses payable decreased $130,000 during the year. | |
5. | Administrative expenses include depreciation expense of $70,000. |
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Bonita Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
BONITA COMPANY
Statement of Cash Flows (Partial) choose the accounting period |
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select an opening section name
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select an item
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$enter a dollar amount
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Adjustments to reconcile net income to
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select a subsection name
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select an item
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$enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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Decrease in Accounts Receivable
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-13000 | |
?? | ||
select a closing section name ?????
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$??
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