Question
Buffalo Inc., a greeting card company, had the following statements prepared as of December 31, 2020. BUFFALO INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,
Buffalo Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
BUFFALO INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 | ||||||
---|---|---|---|---|---|---|
12/31/20 | 12/31/19 | |||||
Cash | $5,900 | $7,000 | ||||
Accounts receivable | 61,500 | 51,300 | ||||
Short-term debt investments (available-for-sale) | 35,000 | 17,800 | ||||
Inventory | 40,400 | 60,200 | ||||
Prepaid rent | 5,000 | 4,000 | ||||
Equipment | 153,400 | 129,000 | ||||
Accumulated depreciationequipment | (35,100 | ) | (25,100 | ) | ||
Copyrights | 46,300 | 49,600 | ||||
Total assets | $312,400 | $293,800 | ||||
Accounts payable | $46,500 | $40,200 | ||||
Income taxes payable | 4,100 | 6,000 | ||||
Salaries and wages payable | 8,100 | 4,000 | ||||
Short-term loans payable | 7,900 | 10,000 | ||||
Long-term loans payable | 60,200 | 68,700 | ||||
Common stock, $10 par | 100,000 | 100,000 | ||||
Contributed capital, common stock | 30,000 | 30,000 | ||||
Retained earnings | 55,600 | 34,900 | ||||
Total liabilities & stockholders equity | $312,400 | $293,800 |
BUFFALO INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 | ||||
---|---|---|---|---|
Sales revenue | $338,750 | |||
Cost of goods sold | 176,400 | |||
Gross profit | 162,350 | |||
Operating expenses | 119,600 | |||
Operating income | 42,750 | |||
Interest expense | $11,500 | |||
Gain on sale of equipment | 2,000 | 9,500 | ||
Income before tax | 33,250 | |||
Income tax expense | 6,650 | |||
Net income | $26,600 |
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 $19,900 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).)
BUFFALO INC. Statement of Cash Flows choose the accounting period: December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 |
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