Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 23-13 Concord Inc., a greeting card company, had the following statements prepared as of December 31, 2020. CONCORD INC. COMPARATIVE BALANCE SHEET AS OF

image text in transcribedimage text in transcribed

Exercise 23-13 Concord Inc., a greeting card company, had the following statements prepared as of December 31, 2020. CONCORD INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,000 $6,900 Accounts receivable 62,400 50,800 Short-term debt investments (available-for-sale) 35,100 18,100 Inventory 40,100 60,400 Prepaid rent 5,100 4,000 Equipment 152,400 131,000 Accumulated depreciation-equipment (34,700 ) (24,800 ) Copyrights 45,500 49,900 Total assets $311,900 $296,300 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $45,900 4,000 8,100 8,100 59,500 100,000 30,000 56,300 $311,900 $39,900 6,000 4,000 10,000 68,700 100,000 30,000 37,700 $296,300 CONCORD INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense $11,400 Gain on sale of equipment 2,000 Income before tax Income tax expense Net income $337,125 176,500 160,625 120,600 40,025 9,400 30,625 6,125 $24,500 Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 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).)

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

Energy Audit And Management Concept Methodologies Procedures And Case Studies

Authors: L. Ashok Kumar, Gokul Ganesan

1st Edition

978-1032067797

More Books

Students also viewed these Accounting questions

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago

Question

4. Describe the role of narratives in constructing history.

Answered: 1 week ago

Question

1. Identify six different types of history.

Answered: 1 week ago