Question
Coronado Company, a major retailer of bicycles and accessories, operates several stores and i a publicly traded company. The comparative balance sheet and income
Coronado Company, a major retailer of bicycles and accessories, operates several stores and i a publicly traded company. The comparative balance sheet and income statement for Coronado as of May 31, 2025, are as follows. The company is preparing its statement of cash flows. Coronado Company Comparative Balance Sheet As of May 31 2025 2024 Current assets Cash $28,200 $20,100 Accounts receivable 75,300 58,100 Inventory 219,000 249,800 Prepaid expenses 9,000 6,900 Total current assets 331,500 334,900 Plant assets Plant assets 600,000 505,700 Less: Accumulated depreciation-plant assets 148,800 126,100 Net plant assets 451,200 379,600 Total assets $782,700 $714,500 Current liabilities Accounts payable $121,800 $114,800 Salaries and wages payable 46,800 72,700 Interest payable 27,300 25,100 Total current liabilities 195,900 212,600 Long-term debt Bonds payable Total liabilities 70,000 100,000 265,900 312,600 Stockholders' equity Common stock, $10 par 370,000 280,000 Retained earnings 146,800 121,900 Total stockholders' equity 516,800 401,900 Total liabilities and stockholders' equity $782,700 $714,500 Coronado Company Income Statement For the Year Ended May 31, 2025 Sales revenue $1,254,100 Cost of goods sold 725,100 Gross profit 529,000 Expenses Salaries and wages expense 250,100 Interest expense 75,400 Depreciation expense 22,700 Other expenses 8,100 Total expenses 356,300 Operating income 172,700 Income tax expense 42,600 Net income $130,100 The following is additional information concerning Coronado's transactions during the year ended May 31, 2025. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. Plant assets costing $94,300 were purchased by paying $24,300 in cash and issuing 7,000 shares of stock. 4. The "other expenses" are related to prepaid items. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Coronado issued 2,000 shares of common stock at par value. 7. Cash dividends of $105,200 were declared and paid at the end of the fiscal year. Prepare a statement of cash flows for Coronado Company for the year ended May 31, 2025, using the direct method. (A reconciliation of net income to net cash provided is not required.) (Show amounts in the investing and financing sections that decrease cash flow with either a-sign eg.-15,000 or in parenthesise.g. (15,000).) CORONADO COMPANY Statement of Cash Flows Cash Flows from Operating Activities Cash Received from Customers Cash payments: May 31, 2025 $ > > > > > $ < > $
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