Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

December 31, 2018 and 2017 ($ in thousands) 2018 2017 $ 30 15 Assets Cash Accounts receivable Short-term investment Inventory Land Buildings and equipment Less:

image text in transcribed

December 31, 2018 and 2017 ($ in thousands) 2018 2017 $ 30 15 Assets Cash Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Accumulated depreciation 50 60 400 550 (115) $ 715 (75) $575 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings OGUN 160 100 250 126 200 100 90 135 $ 715 $575 WRIGHT COMPANY Income Statement For Year Ended December 31, 2018 ($ in thousands) Revenues: Sales revenue $380 $130 Expenses: Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense Net income 300 Additional information from the accounting records: a. Land that originally cost $10,000 was sold for $7,000. b. The common stock of Microsoft Corporation was purchased for $25,000 as a short-term investment not clas- sified as a cash equivalent. c. New equipment was purchased for $150,000 cash. d. A $30,000 note was paid at maturity on January 1. e. On January 1, 2018, bonds were sold at their $60,000 face value. f. Common stock ($50,000 par) was sold for $76,000. g. Net income was $80,000 and cash dividends of $35,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income with cash flows from operating activities.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Systems Control And Audit

Authors: Ron Weber

1st Edition

0139478701, 978-0139478703

More Books

Students also viewed these Accounting questions

Question

2. What is the meaning and definition of Banking?

Answered: 1 week ago

Question

3.What are the Importance / Role of Bank in Business?

Answered: 1 week ago

Question

5. Understand how cultural values influence conflict behavior.

Answered: 1 week ago

Question

8. Explain the relationship between communication and context.

Answered: 1 week ago