Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANY
Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANY
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
Related questions
Question
Condensed financial data of Waterway Company for 2020 and 2019 are presented below.
WATERWAY COMPANY
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
||||||
---|---|---|---|---|---|---|
2020
|
2019
|
|||||
Cash
|
$1,820
|
$1,130
|
||||
Receivables
|
1,730
|
1,280
|
||||
Inventory
|
1,590
|
1,870
|
||||
Plant assets
|
1,940
|
1,690
|
||||
|
(1,220
|
)
|
(1,180
|
)
|
||
Long-term investments (held-to-maturity)
|
1,300
|
1,450
|
||||
$7,160
|
$6,240
|
|||||
Accounts payable
|
$1,200
|
$920
|
||||
Accrued liabilities
|
190
|
230
|
||||
Bonds payable
|
1,430
|
1,530
|
||||
Common stock
|
1,930
|
1,710
|
||||
Retained earnings
|
2,410
|
1,850
|
||||
$7,160
|
$6,240
|
WATERWAY COMPANY
INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 |
||
---|---|---|
Sales revenue
|
$6,840
|
|
Cost of goods sold
|
4,630
|
|
Gross margin
|
2,210
|
|
Selling and administrative expenses
|
930
|
|
Income from operations
|
1,280
|
|
Other revenues and gains
|
||
Gain on sale of investments
|
90
|
|
Income before tax
|
1,370
|
|
Income tax expense
|
550
|
|
Net income
|
820 | |
Cash dividends
|
260
|
|
Income retained in business
|
$560
|
Additional information:
During the year, $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
Prepare a statement of cash flows 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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