Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2021 and 2020, and the increases or decreases in each account from

Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2021 and 2020, and the increases or decreases in each account from 2020 to 2021. Also presented is selected income statement information for the year ended December 31, 2021, and additional information.

Selected Balance Sheet Accounts 2021 2020 Increase (Decrease)
Assets
Accounts receivable $ 68,000 $ 41,000 $ 27,000
Property, plant, and equipment 311,000 264,000 47,000
Accumulated depreciation (212,000 ) (184,000 ) 28,000
Liabilities and Stockholders Equity
Bonds payable 100,000 80,000 20,000
Dividends payable 16,500 11,800 4,700
Common stock, $1 par 56,000 36,000 20,000
Additional paid-in capital 17,500 9,800 7,700
Retained earnings 138,000 108,000 30,000
Selected Income Statement Information for the Year Ended December 31, 2021
Sales revenue $ 189,000
Depreciation 67,000
Gain on sale of equipment 21,500
Net income 62,000

Additional information:

a. Accounts receivable relate to sales of merchandise.

b. During 2021, equipment costing $74,000 was sold for cash.

c. During 2021, bonds payable with a face value of $54,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Required: Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2021. The following two responses are required for each item:

a. Determine the amount that should be reported in Del Conte's 2021 statement of cash flows.

b. Select the category (i.e., O - Operating activity, I - Investing activity and F - Financing activity) in which the amount should be reported in the statement of cash flows.

Amount Category
1. Cash collections from customers (direct method).
2. Payments for purchase of property, plant, and equipment.
3. Proceeds from sale of equipment.
4. Cash dividends paid.
5. Redemption of bonds payable.

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_2

Step: 3

blur-text-image_3

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

Are You Legal A Personal Legal Audit And Empowerment Tool

Authors: Nelson P. Miller

1st Edition

099055533X, 978-0990555339

More Books

Students also viewed these Accounting questions

Question

Compare and contrast SWOT analysis with portfolio analysis.

Answered: 1 week ago

Question

Describe your ideal working day.

Answered: 1 week ago