Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2020. CORONADO INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2020. CORONADO INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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Question
Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
Additional information:
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).)
CORONADO INC.
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
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---|---|---|---|---|---|---|
12/31/20
|
12/31/19
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|||||
Cash
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$5,900
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$7,000
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||||
Accounts receivable
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61,400
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51,500
|
||||
Short-term debt investments (available-for-sale)
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35,000
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18,200
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||||
Inventory
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40,000
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60,500
|
||||
Prepaid rent
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5,000
|
4,100
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||||
Equipment
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152,900
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131,100
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||||
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(35,200
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)
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(25,100
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)
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||
Copyrights
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45,800
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50,000
|
||||
Total assets
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$310,800
|
$297,300
|
||||
Accounts payable
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$46,100
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$40,100
|
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Income taxes payable
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3,900
|
5,900
|
||||
Salaries and wages payable
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8,000
|
4,000
|
||||
Short-term loans payable
|
8,100
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10,000
|
||||
Long-term loans payable
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60,400
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69,300
|
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Common stock, $10 par
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100,000
|
100,000
|
||||
Contributed capital, common stock
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30,000
|
30,000
|
||||
Retained earnings
|
54,300
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38,000
|
||||
Total liabilities &
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$310,800
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$297,300
|
CORONADO INC.
INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 |
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---|---|---|---|---|
Sales revenue
|
$332,700
|
|||
Cost of goods sold
|
176,000
|
|||
Gross profit
|
156,700
|
|||
Operating expenses
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119,300
|
|||
Operating income
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37,400
|
|||
Interest expense
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$11,500
|
|||
Gain on sale of equipment
|
2,100
|
9,400
|
||
Income before tax
|
28,000
|
|||
Income tax expense
|
5,600
|
|||
Net income
|
$22,400
|
Additional information:
1. | Dividends in the amount of $6,100 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 $19,800 and was 70% depreciated was sold during 2020. |
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
CORONADO INC.
Statement of Cash Flows choose the accounting period |
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select an opening name for section one
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select an item
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$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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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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enter a subtotal of the adjustments
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select a closing name for section one
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enter a total amount for section one
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select an opening name for section two
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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 a closing name for section two
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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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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 a closing name for section three
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enter a total amount for section three
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select an item
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enter a total amount for three sections
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select an item
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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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