FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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25.
Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
Additional information:
Prepare a statement ofcash 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).)
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CORONADO INC.
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
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|---|---|---|---|---|---|---|
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12/31/20
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12/31/19
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Cash
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$5,900
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$7,000
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61,400
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51,500
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Short-term debt investments (available-for-sale)
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35,000
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18,200
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Inventory
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40,000
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60,500
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Prepaid rent
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5,000
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4,100
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Equipment
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152,900
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131,100
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(35,200
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)
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(25,100
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)
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Copyrights
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45,800
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50,000
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Total assets
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$310,800
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$297,300
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Accounts payable
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$46,100
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$40,100
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Income taxes payable
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3,900
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5,900
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Salaries and wages payable
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8,000
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4,000
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Short-term loans payable
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8,100
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10,000
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Long-term loans payable
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60,400
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69,300
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Common stock, $10 par
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100,000
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100,000
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Contributed capital, common stock
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30,000
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30,000
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54,300
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38,000
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Total liabilities &
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$310,800
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$297,300
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CORONADO INC.
INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 |
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|---|---|---|---|---|
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Sales revenue
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$332,700
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Cost of goods sold
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176,000
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Gross profit
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156,700
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Operating expenses
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119,300
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Operating income
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37,400
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Interest expense
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$11,500
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Gain on sale of equipment
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2,100
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9,400
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Income before tax
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28,000
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Income tax expense
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5,600
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Net income
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$22,400
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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 $19,800 and was 70% |
Prepare a statement of
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CORONADO INC.
Statement of Cash Flows choose the accounting period |
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select an opening name for section one
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select an item
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$enter a dollar amount
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Adjustments to reconcile net income to
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select a subsection name
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select an item
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$enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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enter a subtotal of the adjustments
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select a closing name for section one
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enter a total amount for section one
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select an opening name for section two
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select a closing name for section two
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enter a total amount for section two
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select an opening name for section three
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select a closing name for section three
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enter a total amount for section three
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select an item
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enter a total amount for three sections
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select an item
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enter a dollar amount
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select a closing name for this statement
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$enter a total of the two previous amounts
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