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 12/31/20 12/31/19 Cash $5,900 $7,000 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 35,000 18,200 Inventory 40,000 60,500 Prepaid rent 5,000 4,100 Equipment 152,900 131,100 Accumulated depreciation—equipment (35,200 ) (25,100 ) Copyrights 45,800 50,000 Total assets $310,800 $297,300 Accounts payable $46,100 $40,100 Income taxes payable 3,900 5,900 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,100 10,000 Long-term loans payable 60,400 69,300 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 54,300 38,000 Total liabilities & stockholders’ equity $310,800 $297,300 CORONADO INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $332,700 Cost of goods sold 176,000 Gross profit 156,700 Operating expenses 119,300 Operating income 37,400 Interest expense $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).)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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25.

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
   
12/31/20
 
12/31/19
Cash
 
$5,900
   
$7,000
 
Accounts receivable
 
61,400
   
51,500
 
Short-term debt investments (available-for-sale)
 
35,000
   
18,200
 
Inventory
 
40,000
   
60,500
 
Prepaid rent
 
5,000
   
4,100
 
Equipment
 
152,900
   
131,100
 
Accumulated depreciation—equipment
 
(35,200
)
 
(25,100
)
Copyrights
 
45,800
   
50,000
 
Total assets
 
$310,800
   
$297,300
 
             
Accounts payable
 
$46,100
   
$40,100
 
Income taxes payable
 
3,900
   
5,900
 
Salaries and wages payable
 
8,000
   
4,000
 
Short-term loans payable
 
8,100
   
10,000
 
Long-term loans payable
 
60,400
   
69,300
 
Common stock, $10 par
 
100,000
   
100,000
 
Contributed capital, common stock
 
30,000
   
30,000
 
Retained earnings
 
54,300
   
38,000
 
Total liabilities & stockholders’ equity
 
$310,800
   
$297,300
 

CORONADO INC.
INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2020
Sales revenue
     
$332,700
Cost of goods sold
     
176,000
Gross profit
     
156,700
Operating expenses
     
119,300
Operating income
     
37,400
Interest expense
 
$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                                                           
select an opening name for section one                                                           
   
select an item                                                           
 
$enter a dollar amount 
Adjustments to reconcile net income to
   
select a subsection name                                                           
   
select an item                                                           
$enter a dollar amount 
 
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
   
enter a subtotal of the adjustments
select a closing name for section one                                                           
 
enter a total amount for section one
     
select an opening name for section two                                                           
   
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select a closing name for section two                                                           
 
enter a total amount for section two
     
select an opening name for section three                                                           
   
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select an item                                                           
enter a dollar amount
 
select a closing name for section three                                                           
 
enter a total amount for section three
     
select an item                                                           
 
enter a total amount for three sections
select an item                                                           
 
enter a dollar amount
select a closing name for this statement                                                           
 
$enter a total of the two previous amounts 
 
 
 
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