reparing a Cash Flow WorksheetGuccii Corporation’s recent comparative balance sheet and income statement follow: Balance Sheets, December 3120192020Assets Cash and cash equivalents$63,000$90,300Investments, short-term012,600Accounts receivable, net71,40088,200Merchandise inventory42,00063,000Investments, long-term042,000Plant assets, net252,000247,800Patents12,60011,340Other assets29,40029,400Total assets$470,400$584,640Liabilities and Stockholders’ Equity Accounts payable$50,400$92,400Accrued expenses payable036,540Bonds payable168,00084,000Common stock, par $10147,000168,000Additional paid-in capital018,900Retained earnings105,000184,800Total liabilities and stockholders’ equity$470,400$584,640Income Statement,For Year Ended December 312020Sales revenue$436,800Cost of goods sold(231,000)Depreciation expense(33,600)Patent amortization(1,260)Other operating expenses(74,340)Net income$96,600 Additional information for 2020 1. Retired bonds paying $84,000 cash. 2. Bought long-term debt investment in securities, $42,000 cash. 3. Purchased a plant asset, $29,400 cash. 4. Purchased short-term investment in securities (not held in a trading account), $12,600 cash. 5. Declared and paid cash dividends, $16,800. 6. Issued capital stock, 2,100 shares at $19 cash per share.Cash Flow WorksheetCash Flow Reconciliationb. Prepare a reconciliation of the total of the three sections of net cash flows from operating, investing, and financing activities to the change in cash.Cash Flow ReconciliationAmountNet cash provided (used) by operating activitiesAnswer Net cash provided (used) by investing activitiesAnswer Net cash provided (used) by financing activitiesAnswer Net change in cash and cash equivalentsAnswer Cash and cash equivalents, January 1, 2020Answer Cash and cash equivalents, December 31, 2020Answer

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Answered: Prepare a reconciliation of the total…

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

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.7E

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reparing a Cash Flow Worksheet

Guccii Corporation’s recent comparative balance sheet and income statement follow:

Balance Sheets, December 31	2019	2020
Assets
Cash and cash equivalents	$63,000	$90,300
Investments, short-term	0	12,600
Accounts receivable, net	71,400	88,200
Merchandise inventory	42,000	63,000
Investments, long-term	0	42,000
Plant assets, net	252,000	247,800
Patents	12,600	11,340
Other assets	29,400	29,400
Total assets	$470,400	$584,640
Liabilities and Stockholders’ Equity
Accounts payable	$50,400	$92,400
Accrued expenses payable	0	36,540
Bonds payable	168,000	84,000
Common stock, par $10	147,000	168,000
Additional paid-in capital	0	18,900
Retained earnings	105,000	184,800
Total liabilities and stockholders’ equity	$470,400	$584,640

Income Statement, For Year Ended December 31	2020
Sales revenue	$436,800
Cost of goods sold	(231,000)
Depreciation expense	(33,600)
Patent amortization	(1,260)
Other operating expenses	(74,340)
Net income	$96,600

Additional information for 2020
1. Retired bonds paying $84,000 cash.
2. Bought long-term debt investment in securities, $42,000 cash.
3. Purchased a plant asset, $29,400 cash.
4. Purchased short-term investment in securities (not held in a trading account), $12,600 cash.
5. Declared and paid cash dividends, $16,800.
6. Issued capital stock, 2,100 shares at $19 cash per share.

Cash Flow Worksheet
Cash Flow Reconciliation

b. Prepare a reconciliation of the total of the three sections of net cash flows from operating, investing, and financing activities to the change in cash.

Cash Flow Reconciliation	Amount
Net cash provided (used) by operating activities	Answer
Net cash provided (used) by investing activities	Answer
Net cash provided (used) by financing activities	Answer
Net change in cash and cash equivalents	Answer
Cash and cash equivalents, January 1, 2020	Answer
Cash and cash equivalents, December 31, 2020	Answer

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