FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Question
Condensed financial data of Waterway Company for 2020 and 2019 are presented below.
|
WATERWAY COMPANY
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
||||||
|---|---|---|---|---|---|---|
|
2020
|
2019
|
|||||
|
Cash
|
$1,790
|
$1,150
|
||||
|
Receivables
|
1,780
|
1,330
|
||||
|
Inventory
|
1,620
|
1,890
|
||||
|
Plant assets
|
1,930
|
1,700
|
||||
|
|
(1,200
|
)
|
(1,180
|
)
|
||
|
Long-term investments (held-to-maturity)
|
1,310
|
1,420
|
||||
|
$7,230
|
$6,310
|
|||||
|
Accounts payable
|
$1,210
|
$920
|
||||
|
Accrued liabilities
|
210
|
240
|
||||
|
Bonds payable
|
1,370
|
1,530
|
||||
|
Common stock
|
1,860
|
1,670
|
||||
|
|
2,580
|
1,950
|
||||
|
$7,230
|
$6,310
|
|
WATERWAY COMPANY
INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 |
||
|---|---|---|
|
Sales revenue
|
$6,970
|
|
|
Cost of goods sold
|
4,680
|
|
|
Gross margin
|
2,290
|
|
|
Selling and administrative expenses
|
940
|
|
|
Income from operations
|
1,350
|
|
|
Other revenues and gains
|
||
|
Gain on sale of investments
|
80
|
|
|
Income before tax
|
1,430
|
|
|
Income tax expense
|
540
|
|
|
Net income
|
890 | |
|
Cash dividends
|
260
|
|
|
Income retained in business
|
$630
|
Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
Prepare a statement of
Transcribed Image Text:During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow
with either a - sign e.g. -15,000 or in parenthesis eg (15,000),)
WATERWAY COMPANY
Statement of Cash Flows
(Direct Method)
2$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps with 2 images
Knowledge Booster
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
- The balance sheets for Mary Company showed the following information. Additional information concerning transactions and events during 2021 are presented below. Mary CompanyBalance Sheet December 31 2021 2020 Cash $ 31,209 $ 10,302 Accounts receivable (net) 43,733 20,503 Inventory 35,350 42,420 Long-term investments 0 15,150 Property, plant & equipment 238,865 151,500 Accumulated depreciation (38,077) (25,250) $311,080 $214,625 Accounts payable $ 17,170 $ 26,765 Accrued liabilities 21,210 17,170 Long-term notes payable 70,700 50,500 Common stock 131,300 90,900 Retained earnings 70,700 29,290 $311,080 $214,625 Additional data: 1. Net income for the year 2021, $61,610. 2. Depreciation on plant assets for the year, $12,827. 3. Sold the long-term…arrow_forwardes Consider the following abbreviated financial statements for Parrothead Enterprises: PARROTHEAD ENTERPRISES 2020 and 2021 Partial Balance Sheets Assets 2020 2021 Liabilities and Owners' Equity Current liabilities Current assets $1,212 $1,315 Net fixed assets 4,980 5,999 Long-term debt PARROTHEAD ENTERPRISES 2021 Income Statement Sales Costs a. Depreciation Interest paid What is owners' equity for 2020 and 2021? (Do not round intermediate calculations.) b. What is the change in net working capital for 2021? (Do not round intermediate calculations.) c-1. In 2021, Parrothead Enterprises purchased $2,508 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? (Do not round intermediate calculations.) $15,346 7,144 1,369 392 c-2. In 2021, Parrothead Enterprises purchased $2,508 in new fixed assets. What is the cash flow from assets for the year? The tax rate is 21 percent. (Do not round intermediate calculations.) d-1. During 2021, Parrothead Enterprises raised $509…arrow_forwardThe balance sheet for Altoid Company is shown below. ALTOID COMPANY Balance Sheet December 31, 2024 Assets: Cash Short-term investments Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity: Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and shareholders' equity $ 250 700 800 950 1,170 $ 3,870 $ 950 1,100 650 1,170 $ 3,870 Selected 2024 income statement information for Altoid Company includes: Net Sales Operating expenses $ 8,700 7,770 Income before interest and tax 930 130 Income tax expense 240 Net income $ 560 Interest expense Required: Compute Altoid Company's long-term debt to equity ratio for 2024 Note: Round your answer to 2 decimal places. Long-term debt to equityarrow_forward
- Condensed balance sheet and income statement data for Bridgeport Corporation are presented here. Bridgeport CorporationBalance SheetsDecember 31 2020 2019 2018 Cash $ 32,000 $ 22,000 $ 20,000 Accounts receivable (net) 52,000 47,000 50,000 Other current assets 93,000 98,000 67,000 Investments 58,000 73,000 48,000 Plant and equipment (net) 500,000 370,000 358,000 $735,000 $610,000 $543,000 Current liabilities $ 87,000 $ 82,000 $ 72,000 Long-term debt 148,000 88,000 53,000 Common stock, $10 par 323,000 313,000 303,000 Retained earnings 177,000 127,000 115,000 $735,000 $610,000 $543,000 Bridgeport CorporationIncome StatementsFor the Years Ended December 31 2020 2019 Sales revenue $743,000 $603,000 Less: Sales returns and allowances 42,000 32,000 Net sales 701,000…arrow_forwardBalance Sheet Calculations. Fermer Company's balance sheet information at the end of 2019 and 2020 is as follows: 2019 Total shareholders' equity Accumulated other comprehensive income Current liabilities Intangible assets Property, plant, and equipment (net) Current assets Total contributed capital Long-term liabilities Retained earnings Total assets Common stock, $10 par Working capital Additional paid-in capital Long-term Investments Total liabilities Current accets Cong-term investments Property, plant, and equipment (net) Intangible assets ✓ Total assets $ (a) 4,800 (b) 12,600 (c) Current abilities Long-term abilities Total liabilities Common stock 10 par Additional paid-in capital Total contributed capital Retained earnings -V Accumulated other comprehensive income 18,000 51,000 (d) Total shareholders equity Total liabilities and shareholderslequity 40,900 (e) (1) 9,900 (0) (m) (n) Additional information: At the end of 2019, additional paid-in capital is twice the amount of…arrow_forwardRefine Assumptions for PPE ForecastFollowing are the income statement and balance sheet for Medtronic PLC. Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expenses 2,330 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 198 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit (loss) 6,268 Other nonoperating income, net (373) Interest expense 1,444 Income (loss) before income taxes 5,197 Income tax provision 547 Net income (loss) 4,650 Net (income) loss attributable to noncontrolling interests (19) Net income (loss) attributable to Medtronic $ 4,631 Consolidated Balance Sheet ($ millions) April 26, 2019 Current assets Cash and cash equivalents $ 4,393 Investments 5,455 Accounts receivable, less…arrow_forward
- Presented below are data taken from the records of Wildhorse Company. December 31,2020 December 31,2019 Cash $15,200 $8,100 Current assets other than cash 84,700 60,600 Long-term investments 10,000 52,900 Plant assets 332,400 215,200 $442,300 $336,800 Accumulated depreciation $20,100 $40,100 Current liabilities 39,600 22,100 Bonds payable 74,800 –0– Common stock 254,500 254,500 Retained earnings 53,300 20,100 $442,300 $336,800 Additional information: 1. Held-to-maturity debt securities carried at a cost of $42,900 on December 31, 2019, were sold in 2020 for $33,600. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $50,500 and were 80% depreciated were sold during 2020 for $8,000. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the…arrow_forwardThe Murdock Corporation reported the following balance sheet data for 2021 and 2020: 2021 2020 Cash $ 77,375 $ 22,955 Available-for-sale debt securities (not cash equivalents) 15,500 85,000 Accounts receivable 80,000 68,250 Inventory 165,000 145,000 Prepaid insurance 1,500 2,000 Land, buildings, and equipment 1,250,000 1,125,000 Accumulated depreciation (610,000 ) (572,000 ) Total assets $ 979,375 $ 876,205 Accounts payable $ 76,340 $ 148,670 Salaries payable 20,000 24,500 Notes payable (current) 25,000 75,000 Bonds payable 200,000 0 Common stock 300,000 300,000 Retained earnings 358,035 328,035 Total liabilities and shareholders' equity $ 979,375 $ 876,205 Additional information for 2021:(1) Sold available-for-sale debt securities costing $69,500 for $74,000.(2) Equipment costing $20,000 with a book value of…arrow_forwardThe balance sheet data of Flounder Company at the end of 2020 and 2019 are shown below. Cash Accounts receivable (net) Inventory Prepaid expenses Equipment Accumulated depreciation-equipment Land Accounts payable Accrued expenses Notes payable-bank, long-term Bonds payable Common stock, $10 par Retained earnings (a) (b) (c) Net Cash Net Cash 2020 $29,800 55,100 65,400 15,200 89,200 (17,840) 70,700 $307,560 Net Cash $65,500 15,100 -0- 30,000 188,100 8.860 $307,560 ✓by operating activities Land was acquired for $30,300 in exchange for common stock, par $30,300, during the year, all equipment purchased was for cash. Equipment costing $12.900 was sold for $3,000, book value of the equipment was $6,100 Cash dividends of $10,000 were declare and paid during the year. Compute net cash provided (used) by: (Show amounts that decrease cash flow with either a-sign eg-12.000 or in parenthesis es (12.00 V by investing activities 2019 $34,800 44,800 ✓by financing activities 45,100 25,100 74,200…arrow_forward
- Comparative balance sheet accounts of Flounder Inc. are presented below. FLOUNDER INC.COMPARATIVE BALANCE SHEET ACCOUNTSAS OF DECEMBER 31, 2020 AND 2019December 31Debit Accounts 2020 2019Cash $42,300 $34,000Accounts Receivable 70,600 59,600Inventory 30,000 23,900Equity investments 22,500 38,700Machinery 29,700 18,600Buildings 67,900 56,600Land 7,500 7,500 $270,500 $238,900Credit Accounts Allowance for Doubtful Accounts $2,200 $1,500Accumulated Depreciation—Machinery 5,700 2,300Accumulated Depreciation—Buildings 13,600 8,900Accounts Payable 34,800 24,500Accrued Payables 3,300 2,700Long-Term Notes Payable 21,200 31,200Common Stock, no-par 150,000 125,000Retained Earnings 39,700 42,800 $270,500 $238,900 Additional data (ignoring taxes): 1. Net income for the year was $43,100.2. Cash dividends declared and paid during the year were $21,200.3. A 20% stock dividend was declared during the…arrow_forwardWildhorse Inc., had the following condensed balance sheet at the end of operations for 2019. Cash Current assets other than cash Equity invesments Plant assets (net) Land 1. During 2020, the following occurred. 2. 3. 4. 5. 6. 7. WILDHORSE INC. BALANCE SHEET DECEMBER 31, 2019 $8,400 28,800 8. 20,000 67,100 40,300 $164,600 Current liabilities Long-term notes payable Bonds payable Common stock Retained earnings A tract of land was purchased for $8,900. Bonds payable in the amount of $15,000 were redeemed at par. An additional $9,900 in common stock was issued at par. Dividends totaling $9,400 were paid to stockholders. Net income was $30,600 after allowing depreciation of $13,300. Land was purchased through the issuance of $22,800 in bonds. $15,200 25,500 25,000 75,000 23,900 $164,600 Wildhorse Inc. sold part of its investment portfolio for $12,900. This transaction resulted in a gain of $1,900 for the company. No unrealized gains or losses were recorded on these investments in 2020. Both…arrow_forwardSuppose the comparative balance sheets of Sage Hill Inc.. are presented here. SAGE HILL INC.Condensed Balance SheetMay 31($ in millions) 2020 2019 Assets Current Assets $9,680 $8,760 Property, plant, and equipment (net) 2,040 1,830 Other assets 1,490 1,640 Total assets $13,210 $12,230 Liabilities and Stockholders' Equity Current Liabilities $3,160 $3,310 Long-term liabilities 1,340 1,370 Stockholders’ equity 8,710 7,550 Total liabilities and stockholders' equity $13,210 $12,230 (a) Prepare a horizontal analysis of the balance sheet data for Sage Hill, using 2019 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) SAGE HILL INC.Condensed Balance SheetMay 31($ in millions) 2020 2019 Increase(Decrease)…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education