Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE SHOW CALCULATIONS, THANK YOU! II. Cash Flow Problem Lawrence Inc.'s Comparative Balance Sheets for 2020 and 2019 and Income Statement for 2020 are presented

image text in transcribedimage text in transcribed

PLEASE SHOW CALCULATIONS,

THANK YOU!

II. Cash Flow Problem Lawrence Inc.'s Comparative Balance Sheets for 2020 and 2019 and Income Statement for 2020 are presented below. Lawrence Inc. Comparative Balance Sheets December 31, 2020 and 2019 ($ in 000s) Assets Cash Accounts Receivable Inventory Land Building Less: Accum. Depreciation Equipment Less: Accum. Depreciation Patent 2020 $2,400 2.400 3,600 2,700 3,600 (1.200) 11,400 (2.100) 4,800 $27.600 2019 $1,500 1.800 2,100 2,400 3,600 (1,080) 9,000 (1,920) 6,000 $23.400 Liabilities Accounts Payable Accrued Expenses Payable Note Payable-Land Stockholders' Equity Common Stock Retained Earnings $3,000 1,200 600 $ 1,800 900 0 15,600 7,200 $27.600 14,700 6,000 $23.400 Lawrence Inc. Income Statement For Year Ended December 31, 2020 ($ in 000) Revenues and Gains Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Income from Operations Other Revenues and Gains Gain on Sale of Land Other Expense and Losses Loss on Sale of Equipment Net Income $10,580 2.400 $8.180 4.580 $3,600 360 (60) $3.900 Additional information from the accounting records: 1. Depreciation Expense and Amortization Expense are included in Operating Expenses. 2. During 2020. signed a Note Payable in exchange for Land. 3. During 2020, equipment with a cost of $1,200,000 (90% depreciated) was sold. 4. The statement of retained earnings reveals reductions for both stock and cash dividends. The stock dividends were $900,000. Instructions: 1. Prepare the Statement of Cash Flows using the direct method. 2. Prepare the Operating Activities Section of the Statement of Cash flows using the indirect method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Accounting Guide Employee Benefit Plans

Authors: American Institute Of Certified Public Accountants

1st Edition

0870515756, 978-0870515750

More Books

Students also viewed these Accounting questions

Question

Compare levels of resolution in conflict outcomes?

Answered: 1 week ago

Question

Strategies for Managing Conflict Conflict Outcomes?

Answered: 1 week ago