Kingbird Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Kingbird as of May 31, 2020, are as follows. The company is preparing its statement of cash flows. KINGBIRD COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31 2020 2019 Current assets $28,200 $20,000 75,600 57,900 Cash Accounts receivable Inventory Prepaid expenses 218,600 250,900 9,000 7,000 Total current assets 331,400 335,800 601,600 505,500 Plant assets Plant assets Less: Accumulated depreciation-plant assets Net plant assets 150,600 125,600 451,000 379,900 Total assets $782,400 $715,700 $123,200 Current liabilities Accounts payable Salaries and wages payable Interest payable Total current liabilities $115,300 72.600 46,800 27.100 24,700 197.100 212,600 Long-term debt 70,000 100.000 Bonds payable Total liabilities 267,100 312,600 370,000 280,000 Stockholders' equity Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 145,300 123,100 515,300 403,100 $782,400 $715,700 KINGBIRD COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020 Sales revenue $1.243,300 Cost of goods sold 715,000 Gross profit 528,300 Expenses 253,500 75,400 Salaries and wages expense Interest expense Depreciation expense Other expenses 25,000 8.100 Total expenses 362,000 Operating income 166,300 Income tax expense 42.600 Net income $123,700 The following is additional information concerning Kingbird's transactions during the year ended May 31, 2020. 1. 2. 3. 4. All sales during the year were made on account. All merchandise was purchased on account, comprising the total accounts payable account. Plant assets costing $96,100 were purchased by paying $25,100 in cash and issuing 7,100 shares of stock. The other expenses" are related to prepaid items. All income taxes incurred during the year were paid during the year. In order to supplement its cash, Kingbird issued 1,900 shares of common stock at par value. Cash dividends of $101,500 were declared and paid at the end of the fiscal year. 5. 6. 7. Prepare a statement of cash flows for Kingbird Company for the year anded May 31, 2020, using the direct method. (A reconciliation of net income to net cash provided is not required.) (Show amounts in the investing and financing sections that decrease cash flow with either a-signes -15,000 or in parenthesiseg (15,000.) KINGBIRD COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, 2020 Cash June 1, 2017 Cash Received rom Customers Cash payments: Cash Payment to Suppliera Cash Payment to Employees NADOO Cash Payment for Income Tax Net Caah Provided by Ogerseng Activities I OD Cash Flows from Francine Active V Purchase of Plant Asseta DOO
