Question
Following are selected balance sheet accounts of Marin Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account
Following are selected balance sheet accounts of Marin Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Selected balance sheet accounts Assets 2020 2019 Increase (Decrease) Accounts receivable $33,700 $24,000 $9,700 Property, plant, and equipment 275,600 247,800 27,800 Accumulated depreciation-plant assets (178,200) (167,600) (10,600) Liabilities and stockholders' equity 2020 2019 Increase Bonds payable $49,200 $46,400 $2,800 Dividends payable 8,000 5,000 3,000 Common stock, $1 par 21,800 18.,900 2.900 Additional paid-in capital: 8,900 3,000 5,900 Retained earnings 103,400 91.000 12.400 Selected income statement information for the year ended December 31, 2020: Sales revenue $154,000 Depreciation 37,800 Gain on sale of equipment 14,300 Net income 30,700 Additional information: 1. During 2020, equipment costing $44,800 was sold for cash. 2. Accounts receivable relate to sales of merchandise. 3. During 2020, $20,000 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items. Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items. Activity (a) Payments for purchase of property, plant, and equipment. $ (b) Proceeds from the sale of equipment. $ (c) Cash dividends paid. $ (d) Redemption of bonds payable. eTextbook and Media $
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