The following are Grouper Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS 2020 2019 Increase(Decrease) Cash $818,200 $696,600 $121,600 Accounts receivable 1,132,100 1,177,800 (45,700 ) Inventory 1,841,000 1,713,900 127,100 Property, plant, and equipment 3,334,900 2,970,400 364,500 Accumulated depreciation (1,157,500 ) (1,030,100 ) (127,400 ) Investment in Myers Co. 308,600 273,500 35,100 Loan receivable 249,300 — 249,300 Total assets $6,526,600 $5,802,100 $724,500 Accounts payable $1,007,200 $949,700 $57,500 Income taxes payable 30,200 50,300 (20,100 ) Dividends payable 80,000 99,900 (19,900 ) Lease liabililty 424,100 — 424,100 Common stock, $1 par 500,000 500,000 — Paid-in capital in excess of par—common stock 1,491,400 1,491,400 — Retained earnings 2,993,700 2,710,800 282,900 Total liabilities and stockholders’ equity $6,526,600 $5,802,100 $724,500 Additional information: 1. On December 31, 2019, Grouper acquired 25% of Myers Co.’s common stock for $273,500. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,094,000. Myers reported income of $140,400 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year. 2. During 2020, Grouper loaned $324,900 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $75,600, plus interest at 10%, on December 31, 2020. 3. On January 2, 2020, Grouper sold equipment costing $59,600, with a carrying amount of $38,200, for $39,600 cash. 4. On December 31, 2020, Grouper entered into a capital lease for an office building. The present value of the annual rental payments is $424,100, which equals the fair value of the building. Grouper made the first rental payment of $60,600 when due on January 2, 2021. 5. Net income for 2020 was $362,900. 6. Grouper declared and paid the following cash dividends for 2020 and 2019. 2020 2019 Declared December 15, 2020 December 15, 2019 Paid February 28, 2021 February 28, 2020 Amount $80,000 $99,900 Prepare a statement of cash flows for Grouper Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The following are Grouper Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS 2020 2019 Increase(Decrease) Cash $818,200 $696,600 $121,600 Accounts receivable 1,132,100 1,177,800 (45,700 ) Inventory 1,841,000 1,713,900 127,100 Property, plant, and equipment 3,334,900 2,970,400 364,500 Accumulated depreciation (1,157,500 ) (1,030,100 ) (127,400 ) Investment in Myers Co. 308,600 273,500 35,100 Loan receivable 249,300 — 249,300 Total assets $6,526,600 $5,802,100 $724,500 Accounts payable $1,007,200 $949,700 $57,500 Income taxes payable 30,200 50,300 (20,100 ) Dividends payable 80,000 99,900 (19,900 ) Lease liabililty 424,100 — 424,100 Common stock, $1 par 500,000 500,000 — Paid-in capital in excess of par—common stock 1,491,400 1,491,400 — Retained earnings 2,993,700 2,710,800 282,900 Total liabilities and stockholders’ equity $6,526,600 $5,802,100 $724,500 Additional information: 1. On December 31, 2019, Grouper acquired 25% of Myers Co.’s common stock for $273,500. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,094,000. Myers reported income of $140,400 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year. 2. During 2020, Grouper loaned $324,900 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $75,600, plus interest at 10%, on December 31, 2020. 3. On January 2, 2020, Grouper sold equipment costing $59,600, with a carrying amount of $38,200, for $39,600 cash. 4. On December 31, 2020, Grouper entered into a capital lease for an office building. The present value of the annual rental payments is $424,100, which equals the fair value of the building. Grouper made the first rental payment of $60,600 when due on January 2, 2021. 5. Net income for 2020 was $362,900. 6. Grouper declared and paid the following cash dividends for 2020 and 2019. 2020 2019 Declared December 15, 2020 December 15, 2019 Paid February 28, 2021 February 28, 2020 Amount $80,000 $99,900 Prepare a statement of cash flows for Grouper Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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 47E

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Question

The following are Grouper Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS
	2020		2019		Increase (Decrease)
Cash	$818,200			$696,600		$121,600
Accounts receivable	1,132,100			1,177,800		(45,700	)
Inventory	1,841,000			1,713,900		127,100
Property, plant, and equipment	3,334,900			2,970,400		364,500
Accumulated depreciation	(1,157,500	)		(1,030,100	)	(127,400	)
Investment in Myers Co.	308,600			273,500		35,100
Loan receivable	249,300			—		249,300
Total assets	$6,526,600			$5,802,100		$724,500

Accounts payable	$1,007,200			$949,700		$57,500
Income taxes payable	30,200			50,300		(20,100	)
Dividends payable	80,000			99,900		(19,900	)
Lease liabililty	424,100			—		424,100
Common stock, $1 par	500,000			500,000		—
Paid-in capital in excess of par—common stock	1,491,400			1,491,400		—
Retained earnings	2,993,700			2,710,800		282,900
Total liabilities and stockholders’ equity	$6,526,600			$5,802,100		$724,500

Additional information:

1.		On December 31, 2019, Grouper acquired 25% of Myers Co.’s common stock for $273,500. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,094,000. Myers reported income of $140,400 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2.		During 2020, Grouper loaned $324,900 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $75,600, plus interest at 10%, on December 31, 2020.
3.		On January 2, 2020, Grouper sold equipment costing $59,600, with a carrying amount of $38,200, for $39,600 cash.
4.		On December 31, 2020, Grouper entered into a capital lease for an office building. The present value of the annual rental payments is $424,100, which equals the fair value of the building. Grouper made the first rental payment of $60,600 when due on January 2, 2021.
5.		Net income for 2020 was $362,900.
6.		Grouper declared and paid the following cash dividends for 2020 and 2019.

	2020	2019
Declared	December 15, 2020	December 15, 2019
Paid	February 28, 2021	February 28, 2020
Amount	$80,000	$99,900

Prepare a statement of cash flows for Grouper Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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