Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANY
Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANY
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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Question
Condensed financial data of Waterway Company for 2020 and 2019 are presented below.
WATERWAY COMPANY
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
||||||
---|---|---|---|---|---|---|
2020
|
2019
|
|||||
Cash
|
$1,820
|
$1,130
|
||||
Receivables
|
1,730
|
1,280
|
||||
Inventory
|
1,590
|
1,870
|
||||
Plant assets
|
1,940
|
1,690
|
||||
Accumulated
|
(1,220
|
)
|
(1,180
|
)
|
||
Long-term investments (held-to-maturity)
|
1,300
|
1,450
|
||||
$7,160
|
$6,240
|
|||||
Accounts payable
|
$1,200
|
$920
|
||||
Accrued liabilities
|
190
|
230
|
||||
Bonds payable
|
1,430
|
1,530
|
||||
Common stock
|
1,930
|
1,710
|
||||
|
2,410
|
1,850
|
||||
$7,160
|
$6,240
|
WATERWAY COMPANY
INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 |
||
---|---|---|
Sales revenue
|
$6,840
|
|
Cost of goods sold
|
4,630
|
|
Gross margin
|
2,210
|
|
Selling and administrative expenses
|
930
|
|
Income from operations
|
1,280
|
|
Other revenues and gains
|
||
Gain on sale of investments
|
90
|
|
Income before tax
|
1,370
|
|
Income tax expense
|
550
|
|
Net income
|
820 | |
Cash dividends
|
260
|
|
Income retained in business
|
$560
|
Additional information:
During the year, $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
Prepare a statement of
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