Concept explainers
Statement of
• LO21–3, LO21–8
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Wright Company. Additional information from Wright’s accounting records is provided also.
Additional information from the accounting records:
a. Land that originally cost $10,000 was sold for $7,000.
b. The common stock of Microsoft Corporation was purchased for $25,000 as a short-term investment not classified as a cash equivalent.
c. New equipment was purchased for $150,000 cash.
d. A $30,000 note was paid at maturity on January 1.
e. On January 1, 2018, bonds were sold at their $60,000 face value.
f. Common stock ($50,000 par) was sold for $76,000.
g. Net income was $80,000 and cash dividends of $35,000 were paid to shareholders.
Required:
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income with cash flows from operating activities.)
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INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
- Problem 21-16 (Algo) Statement of cash flows; indirect method [LO21-4, 21-8] The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux’s accounting records is provided also. DUX COMPANYComparative Balance SheetsDecember 31, 2021 and 2020($ in thousands) 2021 2020 Assets Cash $ 117.0 $ 34.0 Accounts receivable 62.0 64.0 Less: Allowance for uncollectible accounts (3.0 ) (2.0 ) Dividends receivable 17.0 16.0 Inventory 69.0 64.0 Long-term investment 29.0 24.0 Land 84.0 40.0 Buildings and equipment 169.0 264.0 Less: Accumulated depreciation (7.0 ) (120.0 ) $ 537.0 $ 384.0 Liabilities Accounts payable $ 27.0 $ 34.0 Salaries payable 16.0 19.0 Interest payable 18.0 16.0 Income tax payable…arrow_forwardProblem 21-4 (Algo) Statement of cash flows; direct method [LO21-3, 21-8] The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANYComparative Balance SheetsDecember 31, 2021 and 2020($ in thousands) 2021 2020 Assets Cash $ 72 $ 27 Accounts receivable 41 56 Less: Allowance for uncollectible accounts (3 ) (2 ) Dividends receivable 6 5 Inventory 95 90 Long-term investment 27 24 Land 95 75 Buildings and equipment 194 220 Less: Accumulated depreciation (34 ) (60 ) $ 493 $ 435 Liabilities Accounts payable $ 76 $ 83 Salaries payable 7 10 Interest payable 10 5 Income tax payable 5 7 Notes payable 20 0 Bonds…arrow_forwardPB2. LO 16.3 Use the following information from Grenada Company's financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. 2018 Income Statement Balance Sheets $ 286,000 (159,000) (77,500) (9,500) 14,200 Sales Cost of Goods Sold Operating Expenses, other than depreciation expense Depreciation Expense Gain on Sale of Investments Net Income 54,200 Dec. 31, 2018 $16,500 7,400 Accounts Receivable Accounts Payable Dec. 31, 2017 $18,250 8,800 Accounts Receivable Accounts Payablearrow_forward
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- O A https://prod.reader-ui.prod.mheducation.com/epub/sn_710f1/data-uuid-be8dbaUcb8ea w -> Aa く > 三 P20-2 Cash flow statement under indirect method (L LO 20-1, L LO 20-2, LO 20-3, E LO 20-4) The Barden Corporation's comparative balance sheets for 20X1 and 20X0 are presented below. Barden Corporation Table Summary: Row 1 is a header and spans columns 2 and 3. Rows 3, 12, and 17 are subheaders and contain data only in column 1. Balance Sheets December 31, Increase (Decrease) Assets Cash $ 337,000 $246,000 Accounts receivable, net 420,000 280,000 140,000 Marketable securities 0000 -0- Inventories Land 650,000 250,000 Plant and equipment 1,160,000 1,266,000 (106,000) Less: Accumulated depreciation (200,000) Total assets $2,922,000 $2,432,000 $ 490,000 Liabilities and Stockholders' Equity Liabilities: Accounts payable 000 099 $ $ 500,000 $160,000 Accrued wages 520,000 Long-term bonds (due 7/1/20X8) 260,000 360,000 Total liabilities 1,460,000 1,380,000 80,000 Stockholders' equity: Common…arrow_forwardProblem 4: Following are the comparative statements of financial position of CPA Company to add in preparing a statement of cash flows: ● CPA Company Statement of Financial Position December 31, 2021 and 2020 Assets Cash and cash equivalents Financial assets at FVPL Accounts receivable Inventory Long-term investments Property, plant and equipment Less: accumulated depreciation Patents Less: accumulated amortization Total assets Liabilities and Equity Accounts payable Income tax payable 12% bonds payable Less: discount on bonds payable Ordinary share capital Retained earnings The following events took place in 2021: 2021 P900,000 2020 P620,000 300,000 400,000 1,956,500 1,445,000 3,050,000 3,200,000 1,000,000 1,250,000 9,000,000 8,000,000 (2,200,000) (2,000,000) 600,000 600,000 (100,000) P14,606,500 P13,415,000 P2,200,000 P1,900,000 34,500 45,000 4,000,000 4,000,000 (250,000) (300,000) 7,500,000 6,500,000 1,122,000 1,270,000 P14,606,500 P13,415,000 CPA Company declared and paid cash…arrow_forward5 ! Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Exercise 12-10A (Algo) Part b Year 2 $ 102,100 527,300 143,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The income statement showed a gain on the sale of machinery of $4,220. 3. Delsey did not sell land during the year. Year 1 $ 112,700 427,100 98,000 Cost of machinery purchased b. Compute the amount of cash flow associated with the purchase of machinery. Prev 4 5 6 7 - of 9 Nextarrow_forward
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