C. Cash Flow Statement Prepare a Cash Flow Statement for Red Company for the year ended December 31, 2021. Red Company Balance Sheets December 31, ASSETS LIABILITIES AND EQUITY Accounts payable Salaries payable Dividends payable Common stock, $10 par Cash Accounts receivable Inventory Investments (long-term) Land Equipment Accumulated depreciation a. b. C. d. e. Paid-in capital in excess of par Retained earnings Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other information: Other operating expenses Total operating expenses Other income: Gain on sale of long-term investments Income before income tax Income tax expense Net income 2021 $ 186,800 250,000 293,000 0 290,000 Equipment was acquired for $78,000. Land was purchased for $290,000. The investments were sold for $190,000. 735,200 (221,800) $ 1,533,200 Red Company Income Statement Year Ended December 31, 2021 $164,800 13,400 33,200 200,000 640,000 481,800 $ 1,533,200 2020 $ 115,600 247,000 217,800 130,000 0 557,200 (174,800) $ 1,092,800 $ 148,000 12,000 31,400 140,000 400,000 361,400 $ 1,092,800 The common stock was issued for $200,000. Cash dividends declared for the year totaled $143,600. 100 of equipment was received in exchange for common stock $ 1,449,400 826,200 603,200 47,000 205.800 252,800 60,000 410,400 146,400 $ 264,000
C. Cash Flow Statement Prepare a Cash Flow Statement for Red Company for the year ended December 31, 2021. Red Company Balance Sheets December 31, ASSETS LIABILITIES AND EQUITY Accounts payable Salaries payable Dividends payable Common stock, $10 par Cash Accounts receivable Inventory Investments (long-term) Land Equipment Accumulated depreciation a. b. C. d. e. Paid-in capital in excess of par Retained earnings Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other information: Other operating expenses Total operating expenses Other income: Gain on sale of long-term investments Income before income tax Income tax expense Net income 2021 $ 186,800 250,000 293,000 0 290,000 Equipment was acquired for $78,000. Land was purchased for $290,000. The investments were sold for $190,000. 735,200 (221,800) $ 1,533,200 Red Company Income Statement Year Ended December 31, 2021 $164,800 13,400 33,200 200,000 640,000 481,800 $ 1,533,200 2020 $ 115,600 247,000 217,800 130,000 0 557,200 (174,800) $ 1,092,800 $ 148,000 12,000 31,400 140,000 400,000 361,400 $ 1,092,800 The common stock was issued for $200,000. Cash dividends declared for the year totaled $143,600. 100 of equipment was received in exchange for common stock $ 1,449,400 826,200 603,200 47,000 205.800 252,800 60,000 410,400 146,400 $ 264,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:C. Cash Flow Statement
Prepare a Cash Flow Statement for Red Company for the year ended December 31, 2021.
Red Company
Balance Sheets
December 31,
ASSETS
LIABILITIES AND EQUITY
a.
b.
C.
Cash
Accounts receivable
Inventory
Investments (long-term)
Land
Equipment.
Accumulated depreciation
d.
e.
f.
Accounts payable
Salaries payable
Dividends payable
Common stock, $10 par
Paid-in capital in excess of par
Retained earnings
Sales
Cost of goods sold
Gross profit
Operating expenses:
Depreciation expense
Other information:
Other operating expenses
Total operating expenses
Other income:
Gain on sale of long-term investments
Income before income tax
Income tax expense
Net income
2021
$ 186,800
250,000
293,000
0
Equipment was acquired for $78,000.
Land was purchased for $290,000.
The investments were sold for $190,000.
290,000
735,200
(221,800)
$ 1,533,200
Red Company
Income Statement
Year Ended December 31, 2021
$164,800
13,400
33,200
200,000
640,000
481.800
$ 1,533,200
2020
$ 115,600
247,000
217,800
130,000
0
557,200
(174,800)
$ 1,092,800
$ 148,000
12,000
31,400
140,000
400,000
361,400
$ 1,092,800
The common stock was issued for $200,000.
Cash dividends declared for the year totaled $143,600.
$100,000 of equipment was received in exchange for common stock.
$ 1,449,400
826,200
603,200
47,000
205,800
252,800
60,000
410,400
146,400
$ 264,000
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