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Below are the unclassified financial statements for Rorrow Ltd. for the year ended December 31, 2020: Required: Cash Accounts receivable (net) Inventory Prepaid insurance expenses Equipment Accumulated depreciation, equipment Total assets Rorrow Ltd. Balance Sheet As at December 31, 2020 Accounts payable Salaries and wages payable Accrued interest payable Bonds payable, due July 31, 2028 Common shares 370 Statement of Cash Flows Retained earnings Total liabilities and shareholders' equity Expenses Cost of goods sold Salaries and benefits expense Depreciation expense Interest expense Insurance expense Income tax expense 2019 2020 $152,975 $ 86,000 Net Income 321,640 239,080 801,410 855,700 37,840 30,100 Rorrow Ltd. Income Statement For the Year Ended December 31, 2020 Sales 2,564,950 2,156,450 (625,220) (524,600) $3,253,595 $2.842,750 $ 478,900 $ 494,500 312,300 309,000 97,180 430,000 1,509,300 1,204,000 307,450 524,385 $3,253,595 $2.842,730 106,210 322,500 $5,258,246 3,150,180 754,186 100,620 258,129 95,976 253,098 4,612,189 646.057 a. Complete the direct method worksheet for the operating activities section for the year ended December 31, 2020. b. Prepare the operating activities section for Rorrow Ltd. for the year ended December 31, 2020.

Below are the unclassified financial statements for Rorrow Ltd. for the year ended December 31, 2020: Required: Cash Accounts receivable (net) Inventory Prepaid insurance expenses Equipment Accumulated depreciation, equipment Total assets Rorrow Ltd. Balance Sheet As at December 31, 2020 Accounts payable Salaries and wages payable Accrued interest payable Bonds payable, due July 31, 2028 Common shares 370 Statement of Cash Flows Retained earnings Total liabilities and shareholders' equity Expenses Cost of goods sold Salaries and benefits expense Depreciation expense Interest expense Insurance expense Income tax expense 2019 2020 $152,975 $ 86,000 Net Income 321,640 239,080 801,410 855,700 37,840 30,100 Rorrow Ltd. Income Statement For the Year Ended December 31, 2020 Sales 2,564,950 2,156,450 (625,220) (524,600) $3,253,595 $2.842,750 $ 478,900 $ 494,500 312,300 309,000 97,180 430,000 1,509,300 1,204,000 307,450 524,385 $3,253,595 $2.842,730 106,210 322,500 $5,258,246 3,150,180 754,186 100,620 258,129 95,976 253,098 4,612,189 646.057 a. Complete the direct method worksheet for the operating activities section for the year ended December 31, 2020. b. Prepare the operating activities section for Rorrow Ltd. for the year ended December 31, 2020.

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 13.3BPR
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EXERCISE 20-2 Below are the unclassified financial statements for Rorrow Ltd. for the year ended December 31, 2020: Required: Rorrow Ltd. Balance Sheet As at December 31, 2020 Cash Accounts receivable (net) Inventory Prepaid insurance expenses Equipment Accumulated depreciation, equipment Total assets EXERCISE 20-3 Accounts payable Salaries and wages payable 370 Statement of Cash Flows Accrued interest payable Bonds payable, due July 31, 2028 Common shares Retained earnings Total liabilities and shareholders' equity Cost of goods sold Salaries and benefits expense Depreciation expense Interest expense Insurance expense Income tax expense 2020 2019 $ 152,975 $ 86,000 239,080 Net Income 321,640 801,410 37,840 Rorrow Ltd. Income Statement For the Year Ended December 31, 2020 Sales Expenses 2,564,950 2,156,450 (625,220) (524,600) $3,253,505 $2.842,750 $ 478,900 $ 494,500 309,000 97,180 322,500 430,000 1,509,300 1,204,000 307,450 524,385 $3,253,595 $2,842,730 312,300 106,210 855,700 30,100 $5,258,246 3,150,180 754,186 100,620 258,129 95,976 253,098 4,612,189 $646.057 a. Complete the direct method worksheet for the operating activities section for the year ended December 31, 2020. b. Prepare the operating activities section for Rorrow Ltd. for the year ended December 31, 2020.
Transcribed Image Text:EXERCISE 20-2 Below are the unclassified financial statements for Rorrow Ltd. for the year ended December 31, 2020: Required: Rorrow Ltd. Balance Sheet As at December 31, 2020 Cash Accounts receivable (net) Inventory Prepaid insurance expenses Equipment Accumulated depreciation, equipment Total assets EXERCISE 20-3 Accounts payable Salaries and wages payable 370 Statement of Cash Flows Accrued interest payable Bonds payable, due July 31, 2028 Common shares Retained earnings Total liabilities and shareholders' equity Cost of goods sold Salaries and benefits expense Depreciation expense Interest expense Insurance expense Income tax expense 2020 2019 $ 152,975 $ 86,000 239,080 Net Income 321,640 801,410 37,840 Rorrow Ltd. Income Statement For the Year Ended December 31, 2020 Sales Expenses 2,564,950 2,156,450 (625,220) (524,600) $3,253,505 $2.842,750 $ 478,900 $ 494,500 309,000 97,180 322,500 430,000 1,509,300 1,204,000 307,450 524,385 $3,253,595 $2,842,730 312,300 106,210 855,700 30,100 $5,258,246 3,150,180 754,186 100,620 258,129 95,976 253,098 4,612,189 $646.057 a. Complete the direct method worksheet for the operating activities section for the year ended December 31, 2020. b. Prepare the operating activities section for Rorrow Ltd. for the year ended December 31, 2020.
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