Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
See similar textbooks
icon
Related questions
Question
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.
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.
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Intangible assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS