Question
Bonita Inc., a greeting card company, had the following statements prepared as of December 31, 2020. BONITA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,
Bonita Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
BONITA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 | ||||||
---|---|---|---|---|---|---|
12/31/20 | 12/31/19 | |||||
Cash | $6,000 | $7,100 | ||||
Accounts receivable | 62,000 | 50,700 | ||||
Short-term debt investments (available-for-sale) | 35,300 | 17,900 | ||||
Inventory | 40,400 | 59,600 | ||||
Prepaid rent | 5,100 | 3,900 | ||||
Equipment | 153,300 | 131,200 | ||||
Accumulated depreciationequipment | (35,300 | ) | (25,100 | ) | ||
Copyrights | 46,000 | 50,000 | ||||
Total assets | $312,800 | $295,300 | ||||
Accounts payable | $46,200 | $39,700 | ||||
Income taxes payable | 3,900 | 6,100 | ||||
Salaries and wages payable | 7,900 | 4,000 | ||||
Short-term loans payable | 8,000 | 10,100 | ||||
Long-term loans payable | 59,900 | 68,300 | ||||
Common stock, $10 par | 100,000 | 100,000 | ||||
Contributed capital, common stock | 30,000 | 30,000 | ||||
Retained earnings | 56,900 | 37,100 | ||||
Total liabilities & stockholders equity | $312,800 | $295,300 |
BONITA INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 | ||||
---|---|---|---|---|
Sales revenue | $334,625 | |||
Cost of goods sold | 174,300 | |||
Gross profit | 160,325 | |||
Operating expenses | 118,900 | |||
Operating income | 41,425 | |||
Interest expense | $11,300 | |||
Gain on sale of equipment | 2,000 | 9,300 | ||
Income before tax | 32,125 | |||
Income tax expense | 6,425 | |||
Net income | $25,700 |
Additional information:
1. | Dividends in the amount of $5,900 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 indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
BONITA INC. Statement of Cash Flows Adjustments to reconcile net income to e Textbook and Media Save for Later Your grade has been recorded in Wed, Apr 1, 2020, 12:52:34 PM (Ameri Previous
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