Question
*Practice Problem 01 a-b (Part Level Submission) The following are the financial statements of Pina Colada Corp.. Pina Colada Corp. Comparative Balance Sheets December 31
*Practice Problem 01 a-b (Part Level Submission) The following are the financial statements of Pina Colada Corp.. Pina Colada Corp. Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Pina Colada Corp. Income Statement For the Year Ended December 31, 2020 Sales revenue $241,300 Cost of goods sold 176,400 Gross profit 64,900 Operating expenses 24,500 Income from operations 40,400 Interest expense 3,800 Income before income taxes 36,600 Income tax expense 8,200 2020 2019 $ 36,900 $ 19,500 32,100 18,600 30,000 20,300 59,600 78,000 (29,600) (23,200) $129,000 $113,200 $28,200 $ 16,500 7,100 8,500 26,700 32,400 17,500 13,800 49,500 42,000 $129,000 $113,200 Pina Colada Corp. Income Statement For the Year Ended December 31, 2020 Sales revenue $241,300 Cost of goods sold 176,400 Gross profit 64,900 Operating expenses 24,500 Income from operations 40,400 Interest expense 3,800 Income before income taxes 36,600 Income tax expense 8,200 Net income $ 28,400 Additional data: 1. Dividends declared and paid were $20,900. 2. During the year, equipment was sold for $9,800 cash. This equipment cost $18,400 originally and had a book value of $9,800 at the time of sale. 3. All depreciation expense, $15,000, is in the operating expenses. 4. All sales and purchases are on account. *(a) Prepare a statement of cash flows 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).) Pina Colada Corp. Statement of Cash Flows Adjustments to reconcile net income to Pina Colada Corp. Statement of Cash Flows Adjustments to reconcile net income to
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