Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Condensed financial data of Cullumber Company for 2020 and 2019 are presented below. CULLUMBER COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Condensed financial data of Cullumber Company for 2020 and 2019 are presented below. CULLUMBER COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,800 $1,130 Receivables 1,770 1,320 1,560 1,890 Inventory Plant assets 1,900 1,700 (1,220) (1,180) Accumulated depreciation Long-term investments (held-to-maturity) 1,300 1,430 $7.110 $6,290 $1,220 $890 Accounts payable 190 250 Accrued liabilities 1,410 1,520 Bonds payable 1,870 1,730 Common stock 2,420 1,900 Retained earnings $7,110 $6,290 CULLUMBER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,860 Cost of goods sold 4,710 Gross margin 2,150 920 Selling and administrative expenses 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 $520 Income retained in business 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 indirect method. (Show amounts that decrease cash flow with either a sign 0.g.-15.000 or in parenthesis es. (15,000).) CULLUMBER COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities 780 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities $ Depreciation Expense Gain on Sale of Investments Increase in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Decrease in Accrued Liabilities $ $ $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started