Question
Condensed financial data of Ivanhoe Corp. for 2020 and 2019 are presented below. IVANHOE CORP. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Condensed financial data of Ivanhoe Corp. for 2020 and 2019 are presented below.
IVANHOE CORP. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 | ||||
---|---|---|---|---|
2020 | 2019 | |||
Cash | $780 | $610 | ||
Investments | 0 | 200 | ||
Receivables | 2,320 | 2,030 | ||
Inventory | 1,600 | 1,220 | ||
Plant assets | 1,480 | 1,220 | ||
Accumulated depreciation | (590) | (430) | ||
$5,590 | $4,850 | |||
Accounts payable | $750 | $1,170 | ||
Accrued liabilities | 330 | 550 | ||
Bonds payable | 800 | 950 | ||
Capital stock | 1,540 | 1,440 | ||
Retained earnings | 2,170 | 740 | ||
$5,590 | $4,850 |
IVANHOE CORP. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 | ||
---|---|---|
Sales | $15,000 | |
Cost of goods sold | 10,400 | |
Gross margin | 4,600 | |
Selling and administrative expenses | 1,200 | |
Income from operations | 3,400 | |
Other revenues and gains | ||
Loss on sale of investments | 50 | |
Income before tax | 3,350 | |
Income tax expense | 1,340 | |
Net income | 2,010 | |
Cash dividends | 580 | |
Income retained in business | $1,430 |
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 e.g. -15,000 or in parenthesis e.g. (15,000).)
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