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Prepare the statement of cash flows using the DIRECT method. The following are the financial statements of Swifty Corporation. Swifty Corporation Comparative Balance Sheets December
Prepare the statement of cash flows using the DIRECT method.
The following are the financial statements of Swifty Corporation. Swifty Corporation Comparative Balance Sheets December 31 Assets 2020 2019 Cash $37,700 $20,700 Accounts receivable 32,300 18,500 Inventory 29,900 20,900 Equipment 59,300 77,400 Accumulated depreciation-equipment (29,100) (23,200) Total $130,100 $114,300 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,800 $ 16,200 7,000 8,400 27,600 33,800 17,300 14,500 49,400 41,400 $130,100 $114,300 Swifty Corporation Income Statement For the Year Ended December 31, 2020 Sales revenue $241,500 Cost of goods sold 176,500 Gross profit 65,000 Operating expenses 23,600 Income from operations 41,400 Interest expense 3,700 Income before income taxes 37,700 Income tax expense 8,400 Net income $29,300 Additional data: 1. Dividends declared and paid were $21,300. 2. During the year, equipment was sold for $8,800 cash. This equipment cost $18,100 originally and had a book value of $8,800 at the time of sale. 3. All depreciation expense, $15,200, is in the operating expenses. 4. All sales and purchases are on account. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. Swifty Corporation Statement of Cash Flows cash payments:Step by Step Solution
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