Question
As of December 31, 2020 and 2019 12/31/20 12/31/19 Cash $6,000 $7,000 Accounts receivable 61,800 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 59,400
As of December 31, 2020 and 2019
12/31/20 | 12/31/19 | |||||
---|---|---|---|---|---|---|
Cash | $6,000 | $7,000 | ||||
Accounts receivable | 61,800 | 50,700 | ||||
Short-term debt investments (available-for-sale) | 35,300 | 17,900 | ||||
Inventory | 39,800 | 59,400 | ||||
Prepaid rent | 4,900 | 4,000 | ||||
Equipment | 153,100 | 130,500 | ||||
Accumulated depreciationequipment | (35,000 | ) | (24,700 | ) | ||
Copyrights | 45,900 | 50,500 | ||||
Total assets | $311,800 | $295,300 | ||||
Accounts payable | $46,000 | $39,700 | ||||
Income taxes payable | 4,000 | 5,900 | ||||
Salaries and wages payable | 8,100 | 4,100 | ||||
Short-term loans payable | 8,100 | 10,100 | ||||
Long-term loans payable | 59,900 | 68,600 | ||||
Common stock, $10 par | 100,000 | 100,000 | ||||
Contributed capital, common stock | 30,000 | 30,000 | ||||
Retained earnings | 55,700 | 36,900 | ||||
Total liabilities & stockholders equity | $311,800 | $295,300 |
For the Year Ending December 31, 2020
Sales revenue | $333,125 | |||
---|---|---|---|---|
Cost of goods sold | 173,600 | |||
Gross profit | 159,525 | |||
Operating expenses | 118,900 | |||
Operating income | 40,625 | |||
Interest expense | $11,500 | |||
Gain on sale of equipment | 2,000 | 9,500 | ||
Income before tax | 31,125 | |||
Income tax expense | 6,225 | |||
Net income | $24,900 |
Additional information:
1. | Dividends in the amount of $6,100 were declared and paid during 2020. | |
2. | Depreciation expense and amortization expense are included in operating expenses. | |
3. | No unrealized gains or losses have occurred on the investments during the year. | |
4. | Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020. |
Prepare a statement of cash flows using the direct method
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