The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 116 $ 95 Accounts receivable 136 140 Short-term investment 47 14 Inventory 137 135 Land 102 125 Buildings and equipment 695 530 Less: Accumulated depreciation (193 ) (140 ) $ 1,040 899 Liabilities Accounts payable $ 40 $ 48 Salaries payable 2 6 Interest payable 8 5 Income tax payable 5 10 Notes payable 0 33 Bonds payable 296 230 Shareholders’ Equity Common stock 390 330 Paid-in capital—excess of par 187 165 Retained earnings 112 72 $ 1,040 $ 899 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $ 580 Expenses: Cost of goods sold $ 260 Salaries expense 59 Depreciation expense 53 Interest expense 16 Loss on sale of land 5 Income tax expense 87 480 Net income $ 100 Additional information from the accounting records: Land that originally cost $23,000 was sold for $18,000. The common stock of Microsoft Corporation was purchased for $33,000 as a short-term investment not classified as a cash equivalent. New equipment was purchased for $165,000 cash. A $33,000 note was paid at maturity on January 1. On January 1, 2021, bonds were sold at their $66,000 face value. Common stock ($60,000 par) was sold for $82,000. Net income was $100,000 and cash dividends of $60,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).)

The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 116 $ 95 Accounts receivable 136 140 Short-term investment 47 14 Inventory 137 135 Land 102 125 Buildings and equipment 695 530 Less: Accumulated depreciation (193 ) (140 ) $ 1,040 899 Liabilities Accounts payable $ 40 $ 48 Salaries payable 2 6 Interest payable 8 5 Income tax payable 5 10 Notes payable 0 33 Bonds payable 296 230 Shareholders’ Equity Common stock 390 330 Paid-in capital—excess of par 187 165 Retained earnings 112 72 $ 1,040 $ 899 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $ 580 Expenses: Cost of goods sold $ 260 Salaries expense 59 Depreciation expense 53 Interest expense 16 Loss on sale of land 5 Income tax expense 87 480 Net income $ 100 Additional information from the accounting records: Land that originally cost $23,000 was sold for $18,000. The common stock of Microsoft Corporation was purchased for $33,000 as a short-term investment not classified as a cash equivalent. New equipment was purchased for $165,000 cash. A $33,000 note was paid at maturity on January 1. On January 1, 2021, bonds were sold at their $66,000 face value. Common stock ($60,000 par) was sold for $82,000. Net income was $100,000 and cash dividends of $60,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also.

WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands)
	2021		2020
Assets
Cash	$	116		$	95
Accounts receivable		136			140
Short-term investment		47			14
Inventory		137			135
Land		102			125
Buildings and equipment		695			530
Less: Accumulated depreciation		(193	)		(140	)
	$	1,040			899
Liabilities
Accounts payable	$	40		$	48
Salaries payable		2			6
Interest payable		8			5
Income tax payable		5			10
Notes payable		0			33
Bonds payable		296			230
Shareholders’ Equity
Common stock		390			330
Paid-in capital—excess of par		187			165
Retained earnings		112			72
	$	1,040		$	899

WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands)
Revenues:
Sales revenue			$	580
Expenses:
Cost of goods sold	$	260
Salaries expense		59
Depreciation expense		53
Interest expense		16
Loss on sale of land		5
Income tax expense		87		480
Net income			$	100

Additional information from the accounting records:

Land that originally cost $23,000 was sold for $18,000.
The common stock of Microsoft Corporation was purchased for $33,000 as a short-term investment not classified as a cash equivalent.
New equipment was purchased for $165,000 cash.
A $33,000 note was paid at maturity on January 1.
On January 1, 2021, bonds were sold at their $66,000 face value.
Common stock ($60,000 par) was sold for $82,000.
Net income was $100,000 and cash dividends of $60,000 were paid to shareholders.

Required:
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).)

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