Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Buffalo Ski Haus had the following statements prepared as of December 31, 2020. BUFFALO SKI HAUS COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND

Buffalo Ski Haus had the following statements prepared as of December 31, 2020. BUFFALO SKI HAUS COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $2,500 $4,000 Accounts receivable 102,000 98,000 Short-term debt investments (available-for-sale) 98,000 121,000 Inventories 92,000 48,000 Prepaid insurance 4,000 6,100 Ski equipment 88,000 44,000 Accumulated depreciation—equipment (23,500) (18,000) Trademarks 78,000 85,000 Total assets $441,000 $388,100 Accounts payable $93,500 $72,000 Income taxes payable 21,600 15,000 Wages payable 4,000 9,000 Short-term loans payable 23,500 0 Long-term loans payable 76,200 124,000 Common stock, $1 par 100,000 100,000 Additional paid-in capital 20,000 20,000 Retained earnings 102,200 48,100 Total liabilities & stockholders’ equity $441,000 $388,100 BUFFALO SKI HAUS INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales $538,700 Cost of goods sold 306,000 Gross profit 232,700 Operating expenses 93,000 Operating income 139,700 Interest expense $20,400 Loss on sale of equipment 4,000 24,400 Income before tax 115,300 Income tax expense 41,200 Net income $74,100 Additional information: 

1. Dividends in the amount of $20,000 were declared and paid during 2020. 

2. Depreciation expense and amortization expense are included in operating expenses. 

3. Equipment that had a cost of $24,800 and was 20% 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).) 

Step by Step Solution

3.53 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

Statement of cash flows is one of the financial statements of a company and is prepared with a view ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions

Question

How are financial statements adjusted for exchange rates?

Answered: 1 week ago

Question

Describe the three steps in solving a linear programming problem

Answered: 1 week ago

Question

8.7 Explain how cocaine affects the brain.

Answered: 1 week ago