Question
Malcolm Corp.'s statements of financial position at December 31, 2020 and 2019 and information relating to 2020 activities are presented below: December 31, 2020 2019
Malcolm Corp.'s statements of financial position at December 31, 2020 and 2019 and information relating to 2020 activities are presented below:
December 31, | |||||
2020 | 2019 | ||||
Assets | |||||
Cash | $ 110,000 | $ 50,000 | |||
Temporary investments | 150,000 | ||||
Accounts receivable (net) | 255,000 | 255,000 | |||
Inventory | 345,000 | 300,000 | |||
Long-term investments | 100,000 | 150,000 | |||
Property, plant and equipment | 850,000 | 500,000 | |||
Accumulated depreciation | (225,000) | (225,000) | |||
Goodwill | 45,000 | 50,000 | |||
Total assets | $1,630,000 | $1,080,000 | |||
Liabilities and Shareholders' Equity | |||||
Accounts payable | $ 415,000 | $ 360,000 | |||
Long-term note payable | 145,000 | ||||
Common shares | 600,000 | 475,000 | |||
Retained earnings | 470,000 | 245,000 | |||
Total liabilities and shareholders' equity | $1,630,000 | $1,080,000 |
Other information relating to 2020 activities: 1. Net income was $375,000. 2. Cash dividends of $150,000 were declared and paid. 3. Equipment costing $250,000, with a book value of $80,000, was sold for $90,000. 4. A long-term investment was sold for $80,000. There were no other transactions affecting long-term investments. 5. 5,000 common shares were issued for $25 a share. 6. Temporary investments consist of treasury bills maturing on June 30, 2021. The cash provided by financing activities in 2020 was
$270,000.
$130,000.
$120,000.
$420,000.
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