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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 Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Accumulated depreciation $ $ 167 64 168 126 785 149 125 170 25 165 155 590 (229) (170) $1,230 1,060 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 50 $ 54 4 3 10 39 290 368 460 390 219 195 119 74 $1,230 $1,060 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $680 Expenses: Cost of goods sold Salaries expense Depreciation $320 90 59 expense Interest expense Loss on sale of land Income tax expense 11 97 580 Net income $100 Additional information from the accounting records: a. Land that originally cost $29,000 was sold for $26,000. b. The common stock of Microsoft Corporation was purchased for $39,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $195,000 cash. d. A $39,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $78,000 face value. f. Common stock ($70,000 par) was sold for $94,000. g. Net income was $100,000 and cash dividends of $55,000 were paid to shareholders.

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 Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Accumulated depreciation $ $ 167 64 168 126 785 149 125 170 25 165 155 590 (229) (170) $1,230 1,060 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 50 $ 54 4 3 10 39 290 368 460 390 219 195 119 74 $1,230 $1,060 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $680 Expenses: Cost of goods sold Salaries expense Depreciation $320 90 59 expense Interest expense Loss on sale of land Income tax expense 11 97 580 Net income $100 Additional information from the accounting records: a. Land that originally cost $29,000 was sold for $26,000. b. The common stock of Microsoft Corporation was purchased for $39,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $195,000 cash. d. A $39,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $78,000 face value. f. Common stock ($70,000 par) was sold for $94,000. g. Net income was $100,000 and cash dividends of $55,000 were paid to shareholders.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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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).) WRIGHT COMPANY Statement of Cash Flows For the year ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities. Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31
Transcribed Image Text: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).) WRIGHT COMPANY Statement of Cash Flows For the year ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities. Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31
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 $ 125 Cash Accounts receivable Short-term investment $ 149 167 170 64 25 Inventory Land Buildings and equipment Less: Accumulated 168 165 126 155 590 785 (229) (170) depreciation $1,230 1,060 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 2$ 50 $ 54 4 6. 4 10 39 368 290 460 390 219 195 119 74 $1,230 $1,060 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $680 Expenses: Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense $320 59 11 3 97 580 Net income $100 Additional information from the accounting records: a. Land that originally cost $29,000 was sold for $26,000. b. The common stock of Microsoft Corporation was purchased for $39,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $195,000 cash. d. A $39,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $78,000 face value. f. Common stock ($70,000 par) was sold for $94,000. g. Net income was $100,000 and cash dividends of $55,000 were paid to shareholders.
Transcribed Image Text:The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets $ 125 Cash Accounts receivable Short-term investment $ 149 167 170 64 25 Inventory Land Buildings and equipment Less: Accumulated 168 165 126 155 590 785 (229) (170) depreciation $1,230 1,060 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 2$ 50 $ 54 4 6. 4 10 39 368 290 460 390 219 195 119 74 $1,230 $1,060 WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) Revenues: Sales revenue $680 Expenses: Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense $320 59 11 3 97 580 Net income $100 Additional information from the accounting records: a. Land that originally cost $29,000 was sold for $26,000. b. The common stock of Microsoft Corporation was purchased for $39,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $195,000 cash. d. A $39,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $78,000 face value. f. Common stock ($70,000 par) was sold for $94,000. g. Net income was $100,000 and cash dividends of $55,000 were paid to shareholders.
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