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The comparative balance sheets for Swifty Corporation show the fllowing information. December 31 2020 $3,500 2019 $12,900 Cash 12,400 12,100 Accounts receivable 10,000 Inventory 9,000 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,800 Equipment 44,800 19,900 5,000 $107,800 Patents 6,300 $90,900 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building Accounts payable Dividends payable -0- 6,000 5,000 3,000 -0- 4,900 Notes payable, short-term (nontrade) 3,000 4,100 Long-term notes payable Common stock 31,000 25,000 43,000 33,000 Retained earnings 20,700 _$107,800 5,900 $90,900 Additional data related to 2020 are as follows. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $4,900. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). 1. 2. 3. / 1,2 4. Debt investments (available-for-sale) were sold at $1,800 above their cost. The company has made similar sales and investments in the past. 5. 6. Cash was paid for the acquisition of equipment. Along-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash. 7. 8.

The comparative balance sheets for Swifty Corporation show the fllowing information. December 31 2020 $3,500 2019 $12,900 Cash 12,400 12,100 Accounts receivable 10,000 Inventory 9,000 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,800 Equipment 44,800 19,900 5,000 $107,800 Patents 6,300 $90,900 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building Accounts payable Dividends payable -0- 6,000 5,000 3,000 -0- 4,900 Notes payable, short-term (nontrade) 3,000 4,100 Long-term notes payable Common stock 31,000 25,000 43,000 33,000 Retained earnings 20,700 _$107,800 5,900 $90,900 Additional data related to 2020 are as follows. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $4,900. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). 1. 2. 3. / 1,2 4. Debt investments (available-for-sale) were sold at $1,800 above their cost. The company has made similar sales and investments in the past. 5. 6. Cash was paid for the acquisition of equipment. Along-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash. 7. 8.

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 1PEB: Brower Co. is considering the following alternative financing plans: Income tax is estimated at 40%...
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The comparative balance sheets for Swifty Corporation show the following information. December 31 2020 $33,500 2019 $12,900 Cash Accounts receivable 12,400 10,000 Inventory 12,100 9,000 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,800 Equipment 44,800 19,900 Patents 5,000 6,300 $90,900 $107,800 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building -0- 6,000 Accounts payable 5,000 3,000 Dividends payable Notes payable, short-term (nontrade) -0- 4,900 3,000 4,100 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000 Retained earnings 20,700 $107,800 5,900 $90,900 Additional data related to 2020 are as follows. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $4,900. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). Debt investments (available-for-sale) were sold at $1,800 above their cost. The company has made similar sales and investments in the past. 1. 2. 3. 4. 5. Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash. 6. 7. 8.
Transcribed Image Text:The comparative balance sheets for Swifty Corporation show the following information. December 31 2020 $33,500 2019 $12,900 Cash Accounts receivable 12,400 10,000 Inventory 12,100 9,000 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,800 Equipment 44,800 19,900 Patents 5,000 6,300 $90,900 $107,800 Allowance for doubtful accounts $3,100 $4,500 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building -0- 6,000 Accounts payable 5,000 3,000 Dividends payable Notes payable, short-term (nontrade) -0- 4,900 3,000 4,100 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000 Retained earnings 20,700 $107,800 5,900 $90,900 Additional data related to 2020 are as follows. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $4,900. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). Debt investments (available-for-sale) were sold at $1,800 above their cost. The company has made similar sales and investments in the past. 1. 2. 3. 4. 5. Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash. 6. 7. 8.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis eg. (15,000),) SWIFTY CORPORATION Statement of Cash Flows Adjustments to reconcile net income to Supplemental disclosures of cash flow information:
Transcribed Image Text:Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis eg. (15,000),) SWIFTY CORPORATION Statement of Cash Flows Adjustments to reconcile net income to Supplemental disclosures of cash flow information:
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