Carla Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows. CARLA COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED) Sales revenue $3,810 Expenses Cost of goods sold $1,200 Salaries and benefits 720 Heat, light, and power 70 Depreciation 80 Property taxes 20 Patent amortization 20 Miscellaneous expenses 10 Interest 30 2,150 Income before income taxes 1,660 Income taxes 830 Net income 830 Retained earnings—Jan. 1, 2020 350 1,180 Stock dividend declared and issued 650 Retained earnings—Dec. 31, 2020 $530 CARLA COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) Assets 2020 2019 Current assets Cash $341 $190 U.S. Treasury notes (available-for-sale) 10 50 Accounts receivable 780 480 Inventory 740 550 Total current assets 1,871 1,270 Long-term assets Land 150 70 Buildings and equipment 900 610 Accumulated depreciation—buildings and equipment (200 ) (120 ) Patents (less amortization) 110 130 Total long-term assets 960 690 Total assets $2,831 $1,960 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $384 $350 Income taxes payable 37 30 Notes payable 310 310 Total current liabilities 731 690 Long-term notes payable—due 2022 220 220 Total liabilities 951 910 Stockholders’ equity Common stock 1,350 700 Retained earnings 530 350 Total stockholders’ equity 1,880 1,050 Total liabilities and stockholders’ equity $2,831 $1,960 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CARLA COMPANY Statement of Cash Flows ($000 Omitted) $ $

Carla Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows. CARLA COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED) Sales revenue $3,810 Expenses Cost of goods sold $1,200 Salaries and benefits 720 Heat, light, and power 70 Depreciation 80 Property taxes 20 Patent amortization 20 Miscellaneous expenses 10 Interest 30 2,150 Income before income taxes 1,660 Income taxes 830 Net income 830 Retained earnings—Jan. 1, 2020 350 1,180 Stock dividend declared and issued 650 Retained earnings—Dec. 31, 2020 $530 CARLA COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) Assets 2020 2019 Current assets Cash $341 $190 U.S. Treasury notes (available-for-sale) 10 50 Accounts receivable 780 480 Inventory 740 550 Total current assets 1,871 1,270 Long-term assets Land 150 70 Buildings and equipment 900 610 Accumulated depreciation—buildings and equipment (200 ) (120 ) Patents (less amortization) 110 130 Total long-term assets 960 690 Total assets $2,831 $1,960 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $384 $350 Income taxes payable 37 30 Notes payable 310 310 Total current liabilities 731 690 Long-term notes payable—due 2022 220 220 Total liabilities 951 910 Stockholders’ equity Common stock 1,350 700 Retained earnings 530 350 Total stockholders’ equity 1,880 1,050 Total liabilities and stockholders’ equity $2,831 $1,960 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CARLA COMPANY Statement of Cash Flows ($000 Omitted) $ $

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.7P

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CARLA COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED)
Sales revenue		$3,810
Expenses
Cost of goods sold	$1,200
Salaries and benefits	720
Heat, light, and power	70
Depreciation	80
Property taxes	20
Patent amortization	20
Miscellaneous expenses	10
Interest	30	2,150
Income before income taxes		1,660
Income taxes		830
Net income		830
Retained earnings—Jan. 1, 2020		350
		1,180
Stock dividend declared and issued		650
Retained earnings—Dec. 31, 2020		$530

CARLA COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED)
Assets	2020		2019
Current assets
Cash	$341			$190
U.S. Treasury notes (available-for-sale)	10			50
Accounts receivable	780			480
Inventory	740			550
Total current assets	1,871			1,270
Long-term assets
Land	150			70
Buildings and equipment	900			610
Accumulated depreciation—buildings and equipment	(200	)		(120	)
Patents (less amortization)	110			130
Total long-term assets	960			690
Total assets	$2,831			$1,960

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$384			$350
Income taxes payable	37			30
Notes payable	310			310
Total current liabilities	731			690
Long-term notes payable—due 2022	220			220
Total liabilities	951			910
Stockholders’ equity
Common stock	1,350			700
Retained earnings	530			350
Total stockholders’ equity	1,880			1,050
Total liabilities and stockholders’ equity	$2,831			$1,960

Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

CARLA COMPANY Statement of Cash Flows ($000 Omitted)

		$

	$

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