Condensed financial data of Coronado Inc. follow. CORONADO INC. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $81,100 $49,000 Accounts receivable 87,700 38,100 Inventory 111,200 102,100 Prepaid expenses 29,000 27,500 Long-term investments 140,900 113,300 Plant assets 285,000 242,400 Accumulated depreciation (46,800) (48,400) Total $688,100 $524,000 Liabilities and Stockholders’ Equity Accounts payable $110,000 $67,400 Accrued expenses payable 16,500 21,500 Bonds payable 119,300 149,300 Common stock 219,900 174,600 Retained earnings 222,400 111,200 Total $688,100 $524,000 CORONADO INC. Income Statement For the Year Ended December 31, 2022 Sales revenue $376,500 Less: Cost of goods sold $135,600 Operating expenses, excluding depreciation 11,400 Depreciation expense 47,400 Income tax expense 26,500 Interest expense 5,000 Loss on disposal of plant assets 7,800 233,700 Net income $142,800 Additional information: 1. New plant assets costing $100,600 were purchased for cash during the year. 2. Old plant assets having an original cost of $58,000 and accumulated depreciation of $49,000 were sold for $1,200 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $31,600 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. Further analysis reveals that accounts payable pertain to merchandise creditors.
Condensed financial data of Coronado Inc. follow. CORONADO INC. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $81,100 $49,000 Accounts receivable 87,700 38,100 Inventory 111,200 102,100 Prepaid expenses 29,000 27,500 Long-term investments 140,900 113,300 Plant assets 285,000 242,400 Accumulated depreciation (46,800) (48,400) Total $688,100 $524,000 Liabilities and Stockholders’ Equity Accounts payable $110,000 $67,400 Accrued expenses payable 16,500 21,500 Bonds payable 119,300 149,300 Common stock 219,900 174,600 Retained earnings 222,400 111,200 Total $688,100 $524,000 CORONADO INC. Income Statement For the Year Ended December 31, 2022 Sales revenue $376,500 Less: Cost of goods sold $135,600 Operating expenses, excluding depreciation 11,400 Depreciation expense 47,400 Income tax expense 26,500 Interest expense 5,000 Loss on disposal of plant assets 7,800 233,700 Net income $142,800 Additional information: 1. New plant assets costing $100,600 were purchased for cash during the year. 2. Old plant assets having an original cost of $58,000 and accumulated depreciation of $49,000 were sold for $1,200 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $31,600 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. Further analysis reveals that accounts payable pertain to merchandise creditors.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 55PSB: Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance...
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Question
Condensed financial data of Coronado Inc. follow.
CORONADO INC.
Comparative Balance Sheets December 31 |
||||||
---|---|---|---|---|---|---|
Assets
|
2022
|
2021
|
||||
Cash
|
$81,100
|
$49,000
|
||||
Accounts receivable
|
87,700
|
38,100
|
||||
Inventory
|
111,200
|
102,100
|
||||
Prepaid expenses
|
29,000
|
27,500
|
||||
Long-term investments
|
140,900
|
113,300
|
||||
Plant assets
|
285,000
|
242,400
|
||||
|
(46,800)
|
|
(48,400)
|
|||
Total
|
$688,100
|
$524,000
|
||||
Liabilities and
|
||||||
Accounts payable
|
$110,000
|
$67,400
|
||||
Accrued expenses payable
|
16,500
|
21,500
|
||||
Bonds payable
|
119,300
|
149,300
|
||||
Common stock
|
219,900
|
174,600
|
||||
|
222,400
|
111,200
|
||||
Total
|
$688,100
|
$524,000
|
CORONADO INC.
Income Statement For the Year Ended December 31, 2022 |
||||
---|---|---|---|---|
Sales revenue
|
$376,500 | |||
Less:
|
||||
Cost of goods sold
|
$135,600
|
|||
Operating expenses, excluding depreciation
|
11,400
|
|||
Depreciation expense
|
47,400
|
|||
Income tax expense
|
26,500
|
|||
Interest expense
|
5,000
|
|||
Loss on disposal of plant assets
|
7,800
|
233,700 | ||
Net income
|
$142,800
|
Additional information:
1. | New plant assets costing $100,600 were purchased for cash during the year. | |
2. | Old plant assets having an original cost of $58,000 and accumulated depreciation of $49,000 were sold for $1,200 cash. | |
3. | Bonds payable matured and were paid off at face value for cash. | |
4. | A cash dividend of $31,600 was declared and paid during the year. | |
5. | Common stock was issued at par for cash. | |
6. | There were no significant noncash transactions. |
Further analysis reveals that accounts payable pertain to merchandise creditors.
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