Question
Here are comparative balance sheets for Concord Company. Prepare a statement of cash flowsindirect method. CONCORD COMPANY Comparative Balance Sheets December 31 Assets 2020 2019
Here are comparative balance sheets for Concord Company. Prepare a statement of cash flowsindirect method.
| CONCORD COMPANY Comparative Balance Sheets December 31 | ||||
|---|---|---|---|---|
| Assets | 2020 | 2019 | ||
| Cash | $72,000 | $22,000 | ||
| Accounts receivable | 89,000 | 76,000 | ||
| Inventory | 169,000 | 188,000 | ||
| Land | 71,000 | 100,000 | ||
| Equipment | 265,000 | 199,000 | ||
| Accumulated depreciation - equipment | (67,000) | (32,000) | ||
| Total | $599,000 | $553,000 | ||
| Liabilities and Stockholders' Equity | ||||
| Accounts payable | $37,000 | $47,000 | ||
| Bonds payable | 152,000 | 210,000 | ||
| Common stock ($1 par) | 218,000 | 173,000 | ||
| Retained earnings | 192,000 | 123,000 | ||
| Total | $599,000 | $553,000 | ||
Additional information:
| 1. | Net income for 2020 was $101,000. | |
| 2. | Cash dividends of $32,000 were declared and paid. | |
| 3. | Bonds payable amounting to $58,000 were redeemed for cash $58,000. | |
| 4. | Common stock was issued for $45,000 cash. | |
| 5. | Equipment that cost $51,000 and had a book value of $24,000 was sold for $33,000 during 2020; land was sold at cost. |
(a)
Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
| CONCORD COMPANY Statement of Cash Flows December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020 | ||
|---|---|---|
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | ||
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land | $
| |
| Adjustments to reconcile net income to | ||
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | ||
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land | $
| |
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land |
| |
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land |
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| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
| |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | ||
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land |
| |
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land |
| |
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land |
| |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
| |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | ||
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land |
| |
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land |
| |
| Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in InventoryDepreciation ExpenseGain on Disposal of EquipmentIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryIssuance of Common StockLoss on Disposal of EquipmentNet IncomePayment of Cash DividendsPurchase of EquipmentPurchase of LandRedemption of BondsSale of EquipmentSale of Land |
| |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
| |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
| |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
| |
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | $
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