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 $ 79 $ 40 Accounts receivable 83 85 Short-term investment 33 12 Inventory 83 80 Land 58 70 Buildings and equipment 525 420 Less: Accumulated depreciation (127 ) (85 ) $ 734 622 Liabilities Accounts payable $ 29 $ 37 Salaries payable 4 7 Interest payable 4 2 Income tax payable 6 11 Notes payable 0 21 Bonds payable 162 120 Shareholders’ Equity Common stock 265 220 Paid-in capital—excess of par 145 110 Retained earnings 119 94 $ 734 $ 622 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $ 370 Expenses: Cost of goods sold $ 150 Salaries expense 49 Depreciation expense 42 Interest expense 11 Loss on sale of land 6 Income tax expense 52 310 Net income $ 60 Additional information from the accounting records: Land that originally cost $12,000 was sold for $6,000. The common stock of Microsoft Corporation was purchased for $21,000 as a short-term investment not classified as a cash equivalent. New equipment was purchased for $105,000 cash. A $21,000 note was paid at maturity on January 1. On January 1, 2021, bonds were sold at their $42,000 face value. Common stock ($45,000 par) was sold for $80,000. Net income was $60,000 and cash dividends of $35,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).)
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 79 $ 40 Accounts receivable 83 85 Short-term investment 33 12 Inventory 83 80 Land 58 70 Buildings and equipment 525 420 Less: Accumulated depreciation (127 ) (85 ) $ 734 622 Liabilities Accounts payable $ 29 $ 37 Salaries payable 4 7 Interest payable 4 2 Income tax payable 6 11 Notes payable 0 21 Bonds payable 162 120 Shareholders’ Equity Common stock 265 220 Paid-in capital—excess of par 145 110 Retained earnings 119 94 $ 734 $ 622 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $ 370 Expenses: Cost of goods sold $ 150 Salaries expense 49 Depreciation expense 42 Interest expense 11 Loss on sale of land 6 Income tax expense 52 310 Net income $ 60 Additional information from the accounting records: Land that originally cost $12,000 was sold for $6,000. The common stock of Microsoft Corporation was purchased for $21,000 as a short-term investment not classified as a cash equivalent. New equipment was purchased for $105,000 cash. A $21,000 note was paid at maturity on January 1. On January 1, 2021, bonds were sold at their $42,000 face value. Common stock ($45,000 par) was sold for $80,000. Net income was $60,000 and cash dividends of $35,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 55PSA
Related questions
Question
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) |
||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Cash | $ | 79 | $ | 40 | ||||
Accounts receivable | 83 | 85 | ||||||
Short-term investment | 33 | 12 | ||||||
Inventory | 83 | 80 | ||||||
Land | 58 | 70 | ||||||
Buildings and equipment | 525 | 420 | ||||||
Less: |
(127 | ) | (85 | ) | ||||
$ | 734 | 622 | ||||||
Liabilities | ||||||||
Accounts payable | $ | 29 | $ | 37 | ||||
Salaries payable | 4 | 7 | ||||||
Interest payable | 4 | 2 | ||||||
Income tax payable | 6 | 11 | ||||||
Notes payable | 0 | 21 | ||||||
Bonds payable | 162 | 120 | ||||||
Shareholders’ Equity | ||||||||
Common stock | 265 | 220 | ||||||
Paid-in capital—excess of par | 145 | 110 | ||||||
119 | 94 | |||||||
$ | 734 | $ | 622 | |||||
WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) |
||||||
Revenues: | ||||||
Sales revenue | $ | 370 | ||||
Expenses: | ||||||
Cost of goods sold | $ | 150 | ||||
Salaries expense | 49 | |||||
Depreciation expense | 42 | |||||
Interest expense | 11 | |||||
Loss on sale of land | 6 | |||||
Income tax expense | 52 | 310 | ||||
Net income | $ | 60 | ||||
Additional information from the accounting records:
- Land that originally cost $12,000 was sold for $6,000.
- The common stock of Microsoft Corporation was purchased for $21,000 as a short-term investment not classified as a cash equivalent.
- New equipment was purchased for $105,000 cash.
- A $21,000 note was paid at maturity on January 1.
- On January 1, 2021, bonds were sold at their $42,000 face value.
- Common stock ($45,000 par) was sold for $80,000.
- Net income was $60,000 and cash dividends of $35,000 were paid to shareholders.
Required:
Prepare the statement of
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning