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Condensed financial data of Fulton Corp. for 2020 and 2019 are presented below. FULTON CORP. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND
Condensed financial data of Fulton Corp. for 2020 and 2019 are presented below. FULTON CORP. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $800 $600 Investments 0 200 Receivables 2,250 2,100 Inventory 1,600 1,200 Plant assets 1,600 1,200 Accumulated depreciation (600) (455) $5,650 $4,845 Accounts payable $750 $1,200 Accrued liabilities 330 520 Bonds payable 800 1,000 Bonds payable 800 1,000 Capital stock 1,500 1,400 Retained earnings 2,270 725 $5,650 $4,845 FULTON CORP. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales $15,200 Cost of goods sold 10,400 Gross margin 4,800 Selling and administrative expenses 1,205 Income from operations 3,595 Other revenues and gains Loss on sale of investments 50 Income before tax 3,545 Income tax expense 1,400 Income tax expense 1,400 Net income 2.145 Cash dividends 600 Income retained in business $1,545 Additional information: During the year, $100 of common stock was issued in exchange for land. No plant assets were sold in 2020, Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).) FULTON CORP. Statement of Cash Flows For the Year Ended December 31, 2020 (Direct Method) Cash Flows from Operating Activities Cash Collections from Customers 200 Cash Flows from Operating Activities Cash Collections from Customers For the Year Ended December 31, 2020 (Direct Method) Cash Paid for Merchandise Cash Paid for Selling/Administrative Expenses Cash Paid for Income Taxes Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Investments 1205 -1400 i 200 Purchase of Plant Assets - 400 200 00 Question 10 of 10 Net Cash Used by Investing Activities Cash Flows from Financing Activities Redemotion of Common stock -100 Retirement of Bonds Payable Net Cash Used by Financing Activities 200 Net Increase in Cash Cash at Beginning of Period Cash at End of Period Noncash Investing and Financing Activities Issuance of Common Stock for Plant Assets 600 1.22/2 E 600 100
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