FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
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METLOCK INC.
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
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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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$6,900
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61,400
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51,200
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Short-term debt investments (available-for-sale)
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34,700
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18,000
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Inventory
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40,200
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59,700
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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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152,700
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130,200
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(35,400
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)
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(25,000
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)
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Copyrights
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45,700
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49,900
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Total assets
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$310,200
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$295,000
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Accounts payable
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$46,300
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$40,400
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Income taxes payable
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3,900
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6,000
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Salaries and wages payable
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8,100
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3,900
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Short-term loans payable
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8,100
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10,100
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Long-term loans payable
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60,200
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69,400
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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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53,600
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35,200
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Total liabilities &
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$310,200
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$295,000
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METLOCK INC.
INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 |
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|---|---|---|---|---|
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Sales revenue
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$335,075
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Cost of goods sold
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175,200
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Gross profit
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159,875
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Operating expenses
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120,100
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Operating income
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39,775
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Interest expense
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$11,400
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Gain on sale of equipment
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2,000
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9,400
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Income before tax
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30,375
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Income tax expense
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6,075
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Net income
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$24,300
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Additional information:
| 1. | Dividends in the amount of $5,900 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 $20,100 and was 70% |
Prepare a statement of
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METLOCK INC.
Statement of Cash Flows choose the accounting period |
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select an opening name for section one
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select an item
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$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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