METLOCK INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $5,900 $6,900 Accounts receivable 61,400 51,200 Short-term debt investments (available-for-sale) 34,700 18,000 Inventory 40,200 59,700 Prepaid rent 5,000 4,100 Equipment 152,700 130,200 Accumulated depreciation—equipment (35,400 ) (25,000 ) Copyrights 45,700 49,900 Total assets $310,200 $295,000 Accounts payable $46,300 $40,400 Income taxes payable 3,900 6,000 Salaries and wages payable 8,100 3,900 Short-term loans payable 8,100 10,100 Long-term loans payable 60,200 69,400 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 53,600 35,200 Total liabilities & stockholders’ equity $310,200 $295,000 METLOCK INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $335,075 Cost of goods sold 175,200 Gross profit 159,875 Operating expenses 120,100 Operating income 39,775 Interest expense $11,400 Gain on sale of equipment 2,000 9,400 Income before tax 30,375 Income tax expense 6,075 Net income $24,300 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% 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).)
METLOCK INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $5,900 $6,900 Accounts receivable 61,400 51,200 Short-term debt investments (available-for-sale) 34,700 18,000 Inventory 40,200 59,700 Prepaid rent 5,000 4,100 Equipment 152,700 130,200 Accumulated depreciation—equipment (35,400 ) (25,000 ) Copyrights 45,700 49,900 Total assets $310,200 $295,000 Accounts payable $46,300 $40,400 Income taxes payable 3,900 6,000 Salaries and wages payable 8,100 3,900 Short-term loans payable 8,100 10,100 Long-term loans payable 60,200 69,400 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 53,600 35,200 Total liabilities & stockholders’ equity $310,200 $295,000 METLOCK INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $335,075 Cost of goods sold 175,200 Gross profit 159,875 Operating expenses 120,100 Operating income 39,775 Interest expense $11,400 Gain on sale of equipment 2,000 9,400 Income before tax 30,375 Income tax expense 6,075 Net income $24,300 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% 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).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
METLOCK INC.
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
||||||
---|---|---|---|---|---|---|
12/31/20
|
12/31/19
|
|||||
Cash
|
$5,900
|
$6,900
|
||||
|
61,400
|
51,200
|
||||
Short-term debt investments (available-for-sale)
|
34,700
|
18,000
|
||||
Inventory
|
40,200
|
59,700
|
||||
Prepaid rent
|
5,000
|
4,100
|
||||
Equipment
|
152,700
|
130,200
|
||||
|
(35,400
|
)
|
(25,000
|
)
|
||
Copyrights
|
45,700
|
49,900
|
||||
Total assets
|
$310,200
|
$295,000
|
||||
Accounts payable
|
$46,300
|
$40,400
|
||||
Income taxes payable
|
3,900
|
6,000
|
||||
Salaries and wages payable
|
8,100
|
3,900
|
||||
Short-term loans payable
|
8,100
|
10,100
|
||||
Long-term loans payable
|
60,200
|
69,400
|
||||
Common stock, $10 par
|
100,000
|
100,000
|
||||
Contributed capital, common stock
|
30,000
|
30,000
|
||||
|
53,600
|
35,200
|
||||
Total liabilities &
|
$310,200
|
$295,000
|
METLOCK INC.
INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 |
||||
---|---|---|---|---|
Sales revenue
|
$335,075
|
|||
Cost of goods sold
|
175,200
|
|||
Gross profit
|
159,875
|
|||
Operating expenses
|
120,100
|
|||
Operating income
|
39,775
|
|||
Interest expense
|
$11,400
|
|||
Gain on sale of equipment
|
2,000
|
9,400
|
||
Income before tax
|
30,375
|
|||
Income tax expense
|
6,075
|
|||
Net income
|
$24,300
|
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
METLOCK 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
|
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 now
This is a popular solution!
Step by step
Solved in 2 steps
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.Recommended textbooks for you
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,
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