Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected Question Data Saturn Inc. Statement of Financial Position As at December 31st 2021 2020 Assets Cash $75,578 $189,750 Accounts receivable (net) 329,756 330,946 Inventory

image text in transcribedimage text in transcribed

Selected Question Data Saturn Inc. Statement of Financial Position As at December 31st 2021 2020 Assets Cash $75,578 $189,750 Accounts receivable (net) 329,756 330,946 Inventory 222,460 191,130 Prepaid rent 22,287 17,940 Total current assets 650,081 729,7661 Property, plant & equipment 2,553,069 2,401,269 Accumulated depreciation -715,696 -638,940 Total assets $2,487,454 $2,492,095 Liabilities Accounts payable $184,230 $223,560 Income taxes payable 20,010 16,560 Dividends payable 143,750 25,000 Total current liabilities 347,990 265,120 Long-term debt 1,107,500 1,311,000 Total liabilities 1,455,490 1,576,120 Shareholders' Equity Common shares $606,234 $430,560 Contributed surplus 0 14,000 Retained earnings 425,730 485,415 Total shareholder equity 1,031,964 915,975 Total liabilities and shareholders' equ $2,487,454 $2,492,095 Saturn Inc. Income Statement As at December 31st Revenue $1,466,885 Cost of goods sold 679,478 Gross margin 787,407 Operating expenses General and administrativ $361,836 Rent 50,094 Depreciation 96,214 Total operating expenses 508,144 Operating income 279,264 Non-operating items: Interest expense 49,680 Gain on sale of equipment 14,000 Total non-operating items 63,680 Income before tax expense 215,584 Tax expense 47,297 Net income $168,287 Question 2 (continued) $361 36 SO 96232 Depreciation Total operating expenses Operating income Non-operating items Interest expense Gain on sale of equipment Total non-operating items Income before tax expense Tax expense Net income S. 29 49.680 2.000 Additional information 315 SS SI5628 1 The equipment sold in 2021 had an original cost of $98.000 and accumulator No other property, plant or equipment was sold during the year 2. The company declared and issued a stock dividend of 28,000 during the year retained eamings related to the declaration of cash dividends 3. The company bought back 5,000 shares during the year. The book to time of the buyback was $7.00 and the company paid $12.00 to purchase Required: Using the Indirect method provide a summary of cash flows from each activity account. Please show all work Selected Question Data Saturn Inc. Statement of Financial Position As at December 31st 2021 2020 Assets Cash $75,578 $189,750 Accounts receivable (net) 329,756 330,946 Inventory 222,460 191,130 Prepaid rent 22,287 17,940 Total current assets 650,081 729,7661 Property, plant & equipment 2,553,069 2,401,269 Accumulated depreciation -715,696 -638,940 Total assets $2,487,454 $2,492,095 Liabilities Accounts payable $184,230 $223,560 Income taxes payable 20,010 16,560 Dividends payable 143,750 25,000 Total current liabilities 347,990 265,120 Long-term debt 1,107,500 1,311,000 Total liabilities 1,455,490 1,576,120 Shareholders' Equity Common shares $606,234 $430,560 Contributed surplus 0 14,000 Retained earnings 425,730 485,415 Total shareholder equity 1,031,964 915,975 Total liabilities and shareholders' equ $2,487,454 $2,492,095 Saturn Inc. Income Statement As at December 31st Revenue $1,466,885 Cost of goods sold 679,478 Gross margin 787,407 Operating expenses General and administrativ $361,836 Rent 50,094 Depreciation 96,214 Total operating expenses 508,144 Operating income 279,264 Non-operating items: Interest expense 49,680 Gain on sale of equipment 14,000 Total non-operating items 63,680 Income before tax expense 215,584 Tax expense 47,297 Net income $168,287 Question 2 (continued) $361 36 SO 96232 Depreciation Total operating expenses Operating income Non-operating items Interest expense Gain on sale of equipment Total non-operating items Income before tax expense Tax expense Net income S. 29 49.680 2.000 Additional information 315 SS SI5628 1 The equipment sold in 2021 had an original cost of $98.000 and accumulator No other property, plant or equipment was sold during the year 2. The company declared and issued a stock dividend of 28,000 during the year retained eamings related to the declaration of cash dividends 3. The company bought back 5,000 shares during the year. The book to time of the buyback was $7.00 and the company paid $12.00 to purchase Required: Using the Indirect method provide a summary of cash flows from each activity account. Please show all work

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

Horngrens Accounting The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0136162185, 9780136162186

More Books

Students also viewed these Accounting questions

Question

What is ethnocentric bias?

Answered: 1 week ago