Question
ABC Corp had the following financial data related to the year-end 2018 and 2019. Prepare the Statement of Cash Flows, as of December 31, 2019,
ABC Corp had the following financial data related to the year-end 2018 and 2019. Prepare the Statement of Cash Flows, as of December 31, 2019, for ABC Corp.
Comparative Balance Sheet Data | ABC Corp Balance Sheet December 31 | |
| 2019 | 2018 |
Cash | $ 142,740 | $ 46,080 |
Accounts Receivable | 126,360 | 58,800 |
Inventories | 146,250 | 123,420 |
Long-term Investments | 111,800 | 112,800 |
Equipment, net | 286,000 | 228,600 |
| $813,150 | $ 569,700 |
|
|
|
Accounts Payable | $ 130,000 | $ 80,760 |
Income Tax Payable | 21,450 | 20,400 |
Bonds Payable | 97,500 | 132,000 |
Common Shares | 260,000 | 210,000 |
Retained Earnings | 304,200 | 126,540 |
| $813,150 | $ 569,700 |
|
|
|
Income Statement, Dec 31, 2019 |
|
|
Sales |
| $ 479,892 |
Cost of Goods Sold |
| 161,644 |
Gross Profit |
| $318,248 |
Operating Expenses |
|
|
Depreciation Expense |
| 58,800 |
Other Cash Expenses |
| 17,374 |
Interest Expense |
| 3,822 |
Income Tax Expense |
| 10,185 |
Loss on Sale of Equipment |
| 16,800 |
Net Income |
| $ 211,267 |
|
|
|
- There was no gain or loss on the long-term investments sold or the bonds retired.
- Old equipment was sold during the year for $2,100 cash.
- New equipment was purchased for $135,100.
- Dividends were paid during the year*.
- Additional shares of stock were issued during the year. There were no preferred shares. The number of common shares increased from 50,000 in 2016 to 60,000 in 2017.
Dividends Paid = RE beginning +/-Profit or Loss Dividends Paid = RE ending
Where RE beginning is the Retained Earnings at December 31, 2018 and RE ending is Retained Earnings at December 31, 2019.
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