Question
Condensed financial data of Concord Company for 2020 and 2019 are presented below. CONCORD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Condensed financial data of Concord Company for 2020 and 2019 are presented below.
CONCORD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 | ||||||
---|---|---|---|---|---|---|
2020 | 2019 | |||||
Cash | $1,800 | $1,130 | ||||
Receivables | 1,770 | 1,320 | ||||
Inventory | 1,560 | 1,890 | ||||
Plant assets | 1,900 | 1,700 | ||||
Accumulated depreciation | (1,220 | ) | (1,180 | ) | ||
Long-term investments (held-to-maturity) | 1,300 | 1,430 | ||||
$7,110 | $6,290 | |||||
Accounts payable | $1,220 | $890 | ||||
Accrued liabilities | 190 | 250 | ||||
Bonds payable | 1,410 | 1,520 | ||||
Common stock | 1,870 | 1,730 | ||||
Retained earnings | 2,420 | 1,900 | ||||
$7,110 | $6,290 |
ONCORD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue
$6,860
Cost of goods sold
4,710
Gross margin
2,150
Selling and administrative expenses
920
Income from operations
1,230
Other revenues and gains
Gain on sale of investments
80
Income before tax
1,310
Income tax expense
530
Net income
780
Cash dividends
260
Income retained in business
$520
Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method.
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