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Condensed financial data of Swifty Company for 2020 and 2019 are presented below. SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Condensed financial data of Swifty Company for 2020 and 2019 are presented below. SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 Cash $1,780 Receivables 1,750 Inventory 1,590 Plant assets 1,940 Accumulated depreciation (1,190) Long-term investments (held-to-maturity) 1,300 $7,170 2019 $1,120 1,300 1,940 1,670 (1.140) 1,400 $6,290 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,220 190 1.380 1.920 2.460 $7,170 $880 250 1,570 1,730 1,860 $6,290 SWIFTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $7,040 Cost of goods sold 4,800 Gross margin 2.240 Selling and administrative expenses 910 Income from operations 1,330 Other revenues and gains Gain on sale of investments Income before tax 1,410 Income tax expense 550 Net income 860 Cash dividends 260 Income retained in business $600 Additional information: During the year $120 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. (Show amounts in the investing and financing sections that decrease ca flow with either a - sign c.8. -15,000 or in parenthesis e.g. (15,000).) SWIFTY COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Direct Method) Cash Flows from Operating Activities Cash Receipts from Customers Cash Paid for Merchandise Cash Paid for Selling/Administrative Expenses Cash Paid for Income Taxes $
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