Question
Pandemic Inc. provided the following comparative balance sheets for 2020 and 2019 and the 2020 income statement. Additional pertinent information is provided below. - Fixed
Pandemic Inc. provided the following comparative balance sheets for 2020 and 2019 and the 2020 income statement. Additional pertinent information is provided below.
- Fixed assets costing $8,000 with a book value of $3,000 were sold for $6,000.
- Long term investments costing $5,000 were sold for $5,000.
-Redeemed $5,000 of the bond issuance.
- Sold stock___________.
-Paid dividends_________.
All other transactions involved cash.
Be certain you have accounted for all the changes in the account line items somewhere in your 3 areas of SCF (ex. Fixed Assets account went from $28K to $40k - we did not just buy $12K this year....)
2020 2019
Cash $30,000 $16,000
Acct Receivable 7,000 5,000
Ppd Insurance 2,000 3,000
Inventory 13,000 11,000
L-T Investments 22,000 27,000
Fixed Assets 40,000 28,000
Acc Depreciation 8,000 6,000
Acct Payable 16,000 14,000
Interest Payable 4,000 ----000
Taxes Payable 6,000 4,000
Bond Payable 20,000 25,000
Common Stock 21,000 20,000
APIC 3,000 0
Retained Earnings 36,000 21,000
Sales $120,000
-COGS - 60,000
Gross Profit 60,000
- Operating Expenses - 20,000
Income from Operations 40,000
+/- Other
Interest Expense -2,000
Gain on Sale of Equip +3,000
Taxable Income 41,000
-Tax -8,000
Net Income $33,000
Required: Prepare the Statement of Cash Flows for Operating, Investing and Financing using both the indirect and direct methods for Operating.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started